Ilocos Region 

I. Overall Inflation

The inflation rate of the Ilocos Region for the bottom 30% income household decreased to 2.6 percent in August 2024 from 4.6 percent in July 2024, lower by 2.0 percentage points. On the other hand, it is lower by 4.2 percentage points from the rate of 6.8 percent in August 2023. 

1.1    Main Drivers to the Upward Trend of the Overall Inflation

The downward trend of the overall inflation for the bottom 30% income households in August 2024 was primarily contributed by food and non-alcoholic beverages. The index of this commodity group was at 3.5 percent from 8.8 percent in the previous month.

Lower indices were also observed in the following commodity groups during the month of August 2024:

a.    Transport, -0.9 percent from 2.3 percent; and
b.    Education services, 6.5 percent from 7.9 percent.

On the other hand, increased indices compared to their previous month’s rates were observed in the following commodity groups:

a.    Clothing and footwear, 4.1 percent from 3.6 percent;
b.    Housing, water, electricity, gas and other fuel, 1.0 percent from -2.7 percent;
c.    Furnishings, household equipment and routine household maintenance, 4.7 percent from 4.2 percent; 
d.    Health, 2.9 percent from 2.8 percent; 
e.    Recreation, sport and culture, 4.1 percent from 3.2 percent; and
f.    Personal care, and miscellaneous goods and services, 3.7 percent from 3.3 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 August 2024 overall inflation for the bottom 30% income households:

a.    Food and non-alcoholic beverages, 68.5 percent share or 1.78 percentage points;
b.    Personal care, and miscellaneous goods and services, 8.4 percent share or 0.22 percentage point; and
c.    Housing, water, electricity, gas and other fuels, 6.3 percent share or 0.16 percentage point.

II. Food Inflation

Food inflation for the bottom 30% income households at the regional level decelerated to 3.3 percent in August 2024 from 9.0 percent in the previous month. In August 2023, its annual increase was observed at 12.4 percent. 

2.1    Main Drivers to the Downward Trend of the Food Inflation

The deceleration of food inflation was mainly contributed by cereals and cereal products at 9.1 percent in August 2024 from 19.8 percent in July 2024. Likewise, the following food groups contributed to the downward trend in food inflation in August 2024:

a.    Meat and other parts of slaughtered land animals, 2.4 percent from 2.8 percent;
b.    Fruits and nuts, 2.9 percent from 4.3 percent.
c.    Vegetables, tubers, plantains, cooking bananas and pulses, -13.2 percent from 6.0 percent; and
d.    Sugar, confectionery and desserts, -6.3 percent from -4.6 percent.

On the other hand, higher indices were observed in the following food groups during the month of July 2024:

a.    Fish and other seafood, 0.8 percent from 0.2 percent;
b.    Milk, other dairy products and eggs, 2.7 percent from 0.5 percent;
c.    Ready-made food and other products, 9.0 percent from 8.8 percent.

Oils and fats retained its previous month’s inflation rates or had zero percent annual growth.

2.2    Main Contributors to the Food Inflation

Food inflation contributed 61.1 percent or 1.59 percentage points to the August 2024 overall inflation of the bottom 30% income households. The top three main contributors to the food inflation during the month were the following:

a.    Cereals, 96.2 percent share or 3.18 percentage points;
b.    Meat and other parts of slaughtered land animals, 9.5 percent share or 0.31 percentage point; and
c.    Ready-made food and other products, 8.9 percent share or 0.29 percentage point.

Provinces

Among the provinces, La Union posted the highest inflation rate for the bottom 30% income households at 3.6 percent in August 2024, followed by Ilocos Sur with 2.8 percent. Meanwhile, Pangasinan and Ilocos Norte registered 2.4 percent and 1.3 percent annual growth, respectively. 

Compared to their respective levels in August 2023, all provinces recorded lower inflation rates.

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