The inflation rate of the Ilocos Region for the Bottom 30% increased from 3.1 percent in January 2024 to 3.9 percent in February 2024, higher by 0.8 percentage point. On the other hand, it is lower by 5.4 percentage points from the rate of 9.3 percent in February 2023.
1.1 Main Drivers to the Upward Trend of the Overall Inflation
The uptrend of the overall inflation in February 2024 was primarily brought about by the higher year-on-year growth in the heavily-weighted food and non-alcoholic beverages at 9.1 percent in February 2024 from the 6.7 percent in the previous month.
In addition, higher annual rates were also noted in the indices of the following commodity groups during this month:
a. Alcoholic Beverages and Tobacco, 7.1 percent from 6.4 percent;
b. Clothing and Footwear, 3.3 percent from 2.8 percent;
c. Health, 1.9 percent from 1.5 percent;
d. Transport, -0.6 Percent from -1.6 percent; and
e. Personal Care, and Miscellaneous Goods and Services, 4.3 percent from 4.1 percent.
On the other hand, decreased indices were observed in the following commodity groups:
a. Housing, Water, Electricity, Gas and Other Fuels with -7.8 percent
from -5.8 percent;
b. Furnishings, Household Equipment and Routine Household
Maintenance with 5.8 percent from 6.7 percent;
c. Recreation, Sport and Culture with 3.4 percent from 4.8 percent;
d. Restaurants and Accommodation Services with 0.8 percent from
1.3 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 February 2024 overall inflation for the bottom 30% income households:
a. Food and Non-Alcoholic Beverages, 111.9 percent share or 4.36 percentage points;
b. Personal Care, and Miscellaneous Goods and Services, 6.1 percent share or 0.24 percentage point; and
c. Alcoholic Beverages and Tobacco, 4.2 percent share or 0.16 percentage point.
II. Food Inflation
Food inflation for the bottom 30% income households at the regional level moved at a faster pace of 9.3 percent in February 2024 from 6.9 percent in the previous month. In February 2023, its annual increase was observed at 11.0 percent.
2.1 Main Drivers to the Upward trend in Food Inflation
The acceleration of food inflation was mainly due to the slower year-on-year decrease of the vegetables, tubers, plantains, cooking bananas and pulses at 12.4 percent in February 2024 from 26.6 percent in January 2024. Cereals and cereals products which include rice, corn, flour, bread, other bakery products, pasta products, and other cereals also contributed to the uptrend. It posted a faster year-on-year growth increase from 22.3 percent to 22.9 percent. Likewise, meat and other parts of slaughtered land animals (ND) increased from 0.8 percent to 2.4 percent; ready-made food and other food products N.E.C., 7.0 percent from 5.4 percent; and fish and other seafood, 5.6 percent from 5.2 percent.
In addition, slower year-on-year growth decreases in sugar, confectionery and desserts with 7.7 percent from 8.0 percent; and oils and fats with 3.2 percent from 3.5 percent were recorded.
On the other hand, lower annual growth rates were observed in the following food groups during the month of February 2024:
a. Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals, 6.0 percent from 6.6 percent;
b. Milk, Other Dairy Products, and Eggs, 4.0 percent from 5.0 percent; and
c. Fruits and Nuts, 8.8 percent from 12.0 percent. (Table C)
2.2 Main Contributors to the Food Inflation
Food inflation contributed 107.9 percent or 4.21 percentage points to the February 2024 overall inflation for this particular income group.
Among the food groups, the top three main contributors to the food inflation during the month were the following:
a. Cereals and cereal products (ND), 92.8 percent or 8.63 percentage points;
b. Fish and other seafood (ND), 7.3 percent or 0.68 percentage points; and
c. Meat and other parts of slaughtered land animals (ND), 3.4 percent or 0.32 percentage points.
Provinces
Among the provinces, La Union posted the highest inflation rate
for the bottom 30% income households at 5.3 percent in February 2024, followed by Pangasinan and Ilocos Norte with 4.5 percent. Meanwhile, Ilocos Sur recorded a -0.6 percent annual growth.
Compared to their respective levels in February 2023, all the provinces recorded lower inflation rates.
SGD. JOSEPH E. ESTOESTA
Statistical Specialist II
FOR:
ATTY. SHEILA O. DE GUZMAN, CPA
Regional Director
