Table A. Year-on-Year Inflation Rates
for the Bottom 30% Income Households, All Items
In Percent
(2018=100)

A. Philippines                  

1. Overall Inflation

The country’s inflation rate for the bottom 30% income households slowed down to 4.7 percent in August 2024 from 5.8 percent in July 2024. This brings the average inflation from January to August 2024 for this income group to 4.9 percent. In August 2023, the inflation rate was posted at 5.6 percent. (Figure 1, and Tables A, B, 5, 6, and 12)

1.1 Main Drivers to the Downward Trend of the Overall Inflation

The downtrend in the overall inflation in August 2024 was primarily brought about by the lower year-on-year growth rate in the heavily-weighted food and non-alcoholic beverages index at 5.8 percent in August 2024 from 8.3 percent in the previous month. In addition, the transport index recorded an annual decline of 0.1 percent during the month from a 3.6 percent year-on-year increase in July 2024.

Moreover, lower annual rates were noted in the indices of the following commodity groups during the month:

          a. Alcoholic beverages and tobacco, 3.7 percent from 3.9 percent;
          b. Clothing and footwear, 2.7 percent from 3.0 percent;
          c. Health, 2.2 percent from 2.4 percent;
          d. Education services, 5.6 percent from 6.2 percent;
          e. Restaurants and accommodation services, 4.4 percent from 4.6_percent; and
          f.  Personal care, and miscellaneous goods and services, 3.3 percent from 3.4 percent.

In contrast, higher annual growth rates were noted in the indices of housing, water, electricity, gas and other fuels at 4.7 percent in August 2024 from 1.8 percent in July 2024, and information and communication at 0.8 percent during the month from 0.7 percent annual rate in July 2024.

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables 5 and 6)

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 with 67.2_percent share or 3.2 percentage points;
          b. Housing, water, electricity, gas and other fuels with 15.4_percent share or 0.7 percentage point; and
          c. Restaurants and accommodation services with 6.9 percent share or 0.3 percentage point.

2. Food Inflation

Food inflation for the bottom 30% income households at the national level moved at a slower pace of 6.0 percent in August 2024 from 8.7 percent in the previous month. In August 2023, its annual increase was observed at 7.7 percent. (Table 9)

2.1 Main Drivers to the Downward Trend of the Food Inflation

The deceleration of food inflation was mainly due to the slower annual growth rate in rice index at 16.4 percent during the month from 22.8 percent in July 2024. Also contributing to the downtrend is vegetables, tubers, plantains, cooking bananas and pulses with an annual decrease of 1.1 percent during the month from 4.5 percent annual increase in July 2024.

In addition, faster annual declines were noted in the indices of fish and other seafood at 3.8 percent, and sugar, confectionery and desserts at 5.4 percent during the month from their respective annual decreases of 1.3 percent and 4.8 percent in the previous month.

Moreover, lower inflation rates during the month were noted in the following food groups:

          a. Flour, bread and other bakery products, pasta products, and other cereals, 2.8 percent from 3.0 percent;
          b. Meat and other parts of slaughtered land animals, 4.2 percent from 4.7 percent; and
          c. Ready-made food and other food products not elsewhere classified, 6.8 percent from 7.6 percent.

In contrast, the following commodity groups registered higher inflation rates during the month:

          a. Corn, 18.9 percent from 18.2 percent;
          b. Milk, other dairy products and eggs, 3.6 percent from 2.0 percent; and
          c. Fruits and nuts, 8.7 percent from 7.2 percent.

Meanwhile, slower annual decrease was observed in the index of oils and fats at 2.2 percent during the month from a 3.1 percent annual decline in July 2024. (Tables 7 and 13)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 65.4 percent or 3.1 percentage points to the August 2024 overall inflation for this particular income group.

Among the food groups, the main contributors to the food inflation during the month were the following:

          a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 94.2 percent share or 5.7 percentage points; 
          b. Meat and other parts of slaughtered land animals with 7.4 percent share or 0.4 percentage point; and
          c. Fruits and nuts with 4.3 percent share or 0.3 percentage point.
                 
 

B. National Capital Region (NCR)

Inflation rate for the bottom 30% income households in NCR, likewise, eased to 2.9 percent in August 2024 from 4.5 percent in July 2024. In August 2023, inflation in the area was recorded at 7.2 percent. (Tables A, 5, 6, and 13)

The downtrend of the inflation in the area was mainly brought about by the slower annual increase in the heavily-weighted food and non-alcoholic beverages index at 2.3 percent in August 2024 from 5.7 percent in the previous month.

In addition, slower annual increments were observed in the indices of the following commodity groups during the month:

          a. Clothing and footwear, 2.0 percent from 2.1 percent;
          b. Transport, 2.6 percent from 4.0 percent;
          c. Recreation, sport and culture, 4.2 percent from 4.4 percent;
          d. Education services, 2.3 percent from 5.9 percent;
          e. Restaurants and accommodation services, 3.1 percent from 3.6 percent; and
          f.  Personal care, and miscellaneous goods and services, 2.5 percent from 2.7 percent.

On the other hand, faster annual increases were noted in the indices of housing, water, electricity, gas and other fuels at 4.8 percent in August 2024 from 4.7 percent in the previous month, and health with a year-on-year increase of 1.4 percent in August 2024 from 1.3 percent in the previous month.

The indices of the rest of the commodity groups remained at their respective previous month’s annual rates. (Tables 5 and 6) 

C. Areas Outside NCR (AONCR)

Following the trend at the national level and in NCR, inflation for the bottom 30% income households in AONCR decelerated to 4.8 percent in August 2024 from 5.9 percent in July 2024. In August 2023, inflation for this income group was registered at 5.6 percent. (Tables A, 5, and 14)

The deceleration of inflation in the area was mainly influenced by the lower year-on-year increment in the heavily-weighted food and non-alcoholic beverages index at 5.9 percent in August 2024 from 8.4 percent in July 2024. Also contributing to the downtrend of inflation was the annual decline of transport index at 0.3 percent in August 2024 from 3.6 percent annual increase in the previous month.

Moreover, slower annual increases were observed in the indices of the following commodity groups during the month: 

          a. Alcoholic beverages and tobacco, 3.7 percent from 3.9 percent;
          b. Clothing and footwear, 2.7 percent from 3.0 percent;
          c. Health, 2.3 percent from 2.4 percent;
          d. Education services, 5.7 percent from 6.2 percent;
          e. Restaurants and accommodation services, 4.6 percent from 4.7 percent; and
          f.  Personal care, and miscellaneous goods and services, 3.3 percent from 3.4 percent.

Meanwhile, faster annual increases were observed in the indices of the following commodity groups during the month:

          a. Housing, water, electricity, gas and other fuels, 4.7 percent from 1.6 percent;
          b. Information and communication, 0.9 percent from 0.8 percent; and
          c. Recreation, sport and culture, 6.1 percent from 6.0 percent.

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables 5 and 6)

In August 2024, 14 regions outside NCR recorded lower inflation rates for the bottom 30% income households relative to their respective inflation rates in July 2024. The lowest inflation rate was recorded in Region I (Ilocos Region) at 2.6 percent, while the highest inflation rate was observed in Region XI (Davao Region) at 6.3 percent. (Table 6)

Note: CPIs and inflation rates for the bottom 30% income households by region are posted at the PSA OpenSTAT portal at https://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2M__PI__BIH__2018/?tablelist=true.

CLAIRE DENNIS S. MAPA, PhD               
Undersecretary                  
National Statistician and Civil Registrar General                  
 

See more at the Consumer Price Index for Bottom 30% Income Households main page.