Ilocos Region

I. Overall Inflation

The inflation rate of the Ilocos Region for the bottom 30% income household increased to 4.6 percent in July 2024 from 4.3 percent in June 2024, higher by 0.3 percentage point. On the other hand, it is lower by 0.7 percentage point from the rate of 5.3 percent in July 2023.

1.1 Main Drivers to the Upward Trend of the Overall Inflation

The upward trend of the overall inflation for the bottom 30% income households in July 2024 was primarily contributed by food and non-alcoholic beverages. An increase was noted in the index of this commodity group at 8.8 percent from 8.2 percent in the previous month.
Higher indices were also observed in the following commodity groups during the month of July 2024:
a. Transport, 2.3 percent from 1.4 percent;
b. Housing, water, electricity, gas, and other fuel, -2.7 percent from -2.9 percent; and
c. Education services, 7.9 percent from 7.7 percent.

On the other hand, decreased indices compared to their previous month’s rates were observed in the following commodity groups:
a. Alcoholic beverages and tobacco, 3.3 percent from 3.7 percent;
b. Clothing and footwear, 3.6 percent from 3.7 percent;
c. Furnishings, household equipment, and routine household maintenance, 4.2 percent from 4.4 percent;
d. Health, 2.8 percent from 2.9 percent;
e. Recreation, sport, and culture, 3.2 percent from 3.8 percent; and
f. Personal care, and miscellaneous goods and services, 3.3 percent from 3.5 percent.

The rest of the commodity groups retained their previous month’s inflation rates or had zero percent annual growths. (Table B)

1.2 Main Contributor to the Overall Inflation

The following commodity groups were the top three contributors to the July 2024 overall inflation for the bottom 30% income households:
a. Food and non-alcoholic beverages, 92.7 percent share or 4.3 percentage points;
b. Personal care, and miscellaneous goods and services, 4.0 percent share or 0.2 percentage point; and
c. Transport, 2.8 percent share or 0.1 percentage point.

II. Food Inflation

Food inflation for the bottom 30% income households at the regional level accelerated to 9.0 percent in July 2024 from 8.5 percent in the previous month. In July 2023, its annual increase was observed at 6.7 percent.

2.1 Main Drivers to the Upward Trend of the Food Inflation

The acceleration of food inflation was mainly contributed by vegetables, tubers, plantains, cooking bananas and pulses at 6.0 percent in July 2024 from -2.5 percent in June 2024. Likewise, the following food groups contributed to the uptrend in food inflation in July 2024:
a. Meat and other parts of slaughtered land animals, 2.8 percent from 2.5 percent;
b. Fish and other seafood, 0.2 percent from -2.1 percent;
c. Milk, other dairy products and eggs, 0.5 percent from -0.7 percent;
d. Oils and fats, -2.9 from -3.0; and
e. Fruits and nuts, 4.3 percent from 3.5 percent.

On the other hand, lower indices were observed in the following food groups during the month of July 2024:
a. Cereals and cereal products, 19.8 percent from 21.8 percent;
b. Sugar, confectionery and desserts, -4.5 percent from -4.6 percent; and
c. Ready-made food and other products, 8.8 percent from 9.9 percent.

2.2 Main Contributors to the Food Inflation
Food inflation contributed 88.9 percent or 4.1 percentage points to the July 2024 overall inflation. The top three main contributors to the food inflation during the month were the following:
a. Cereals and cereal products, 87.1 percent share or 7.8 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses, 4.7 percent share or 0.4 percentage point; and
c. Meat and other parts of slaughtered land animals, 4.3 percent share or 0.4 percentage point.

Among the provinces, La Union posted the highest inflation rate for the bottom 30% income households at 7.8 percent in July 2024, followed by Ilocos Norte with 4.6 percent. Meanwhile, Pangasinan and Ilocos Sur registered 4.4 percent and 2.8 percent annual growth, respectively.
Compared to their respective levels in July 2023, only La Union posted higher inflation rate.

SGD. ATTY. SHEILA O. DE GUZMAN
Regional Director, RSSO 01