In December 2024, the headline inflation in Aklan grew at a faster rate of 1.4 percent compared to the 1.3 percent recorded in the previous month, but is lower by 2.5 percentage points from the 3.9 percent inflation observed in December 2023. Aklan's inflation rate fall below the national and regional rate, standing at 2.9 percent and 3.4 percent, respectively.

Among the major commodity groups, the primary factor contributing to the uptrend in inflation this month was Food and Non-alcoholic beverages, registering an inflation of 0.2 percent from -0.3 percent inflation in the previous month. It was observed that Fish and Seafoods mainly brought the uptrend of Food and Non-alcoholic Beverages, showing 1.7 percent inflation in December 2024 from -8.4 percent deflation in November 2024. (See Figure 1)

Among other food commodities, Fruits and nuts, followed next, this month from -1.1 percent to 7.0 percent during the reference month, as well as, Vegetables, tubers, plantains, cooking bananas and pulses which increased from -9.4 percent to -6.7 percent, Sugar, confectionery and desserts went up from -4.0 percent to -2.0 percent and Oils and fats went up from -0.5 percent in November to 0.4 percent in December 2024.

On the contrary, price of other food products increased slower from November to December 2024:

    a. Rice, from 8.2 percent to -0.2 percent;
    b. Flour, bread and other bakery products, pasta products and other cereals, from 1.2 percent
       to 0.3 percent;
    c. Milk, other dairy products and eggs, from 1.9 percent to 0.8 percent; and
    d. Ready-made food and other food products nec, from 4.5 percent to 3.5 percent.

Following the Food and Non-Alcoholic Beverages, Transport commodities displayed a  acceleration in inflation from -1.3 percent in the previous month to 0.4 percent in December, while, Furnishings, household equipment and routine household maintenance inflated from 0.9 percent a month ago to 1.4 percent reported this month. (See Figure 1)

On the other hand, the following commodity groups exhibited slower inflation in December than
November:

    1. Alcoholic beverages and tobacco, from 3.1 percent to -1.3 percent;
    2. Housing, water, electricity, gas and other fuels, from 3.2 percent to 2.9 percent;
    3. Recreation, culture and sport, from 0.9 percent to 0.2 percent;
    4. Restaurants and accommodation services, from 11.9 percent to 8.3 percent; and
    5. Personal care, and miscellaneous goods and services, from 1.8 percent to 1.7 percent.

Inflation of the rest of the major commodities remained stable in December 2024 from November 2024.

Major Contributors to Inflation

The overall inflation of Aklan was mainly contributed by price hike of Housing, water, electricity,
gas and other fuels which recorded 2.9 percent inflation with 40.3 percent share to overall inflation.
This was followed by Restaurants and accommodation services at 8.3 percent inflation with 36.1
percent share to inflation, and Food and non-alcoholic beverages with 0.2 percent inflation and
6.0 percent share to inflation.

Other major commodity groups also contributed to the province’s inflation rate in December 2024:

    a. Personal care and Miscellaneous goods and services, 1.7 percent inflation with 5.7 percent share;
    b. Furnishings, Household Equipment and Routine Household Maintenance, 1.4 percent inflation with 3.7 percent share;
    c. Transport, 0.4 percent with 2.7 percent share; 
    d. Alcoholic beverages and tobacco, 1.3 percent with 2.6 percent share; and
    e. Clothing and footwear, 0.7 percent inflation with 1.9 percent share.

Purchasing Power of Peso

The purchasing power of peso (PPP) is inversely associated with inflation, which implies that as  inflation increases, the purchasing power of peso decreases.

PPP in December 2024 was valued at 80 centavos, lower than 81 centavos recorded PPP in the same month last year.

This indicates that a 1000-peso worth of goods and services bought in 2018 will require a person an additional P244.00 in order to buy them in December 2024.

Moreover, 0.2 percent inflation in food commodities results in an additional P26.30 this December 2024 in order to buy the same basket of food commodities worth P1000.00 in 2018.

EXPLANATORY TEXT

Consumer Price Index (CPI) - is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by the households relative to a base year. It shows how much on the average, prices of goods and services have increased or decreased from a particular reference period.

The CPI Report was derived from the results of the 2018-based CPI survey comprised of thirteen (13) major commodity groups. These are the following: Food and Non-alcoholic Beverages; Alcoholic Beverages and Tobacco; Clothing and Footwear; Housing, Water, Electricity,Gas and Other Fuels; Furnishings, Household Equipment and Routine Maintenance of the House; Health; Transport; Information and Communication Services; Recreation, Sport and Culture; Education; Restaurants and Accommodation Services; Financial Services; and Personal Care and Miscellaneous Goods and Services.

Inflation rate is defined as the annual rate of change or the year-on-year change in the CPI.

Purchasing power of peso is a measure of the real value of the peso in a given period relative to a chosen reference period.

Market basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Base period or Base Year is the period, usually a year, at which the index number is
set to 100. It is the reference point of the index number series. In this report, 2018 is used as
the base period.

ENGR. ANTONET B. CATUBUAN
Chief Statistical Specialist