30 Oct 2024 - GUIMARAS. The inflation rate for the bottom 30% of income households (HHs) in Guimaras has decreased to 6.0% in September 2024 from 6.4% in August 2024, marking an improvement from the 7.0% rate recorded in September 2023, according to the latest data from the Philippine Statistics Authority (PSA).

“From January to September 2024, the provincial average inflation for low-income households stands at 7.4%,” said Provincial Statistics Officer Nelida B. Losare.

Drivers of Downtrend Inflation

The reduction in inflation for low-income households primarily attributed to a slower price change for food and non-alcoholic beverages, which saw inflation drop to 6.6% in September, against 7.9% in August. 

“A significant factor in this decline was the notable decrease in the inflation rate for vegetables, tubers, plantains, cooking bananas, and pulses, which recorded an inflation rate of -15.1% in September, down from -2.3% in August,” Losare said. 

Additionally, the transport commodity group contributed to the overall decline, with gasoline prices showing an inflation rate of -18.9% in September, a significant drop from -10.4% in August. This decrease was instrumental in the transport sector's inflation rate of -4.9% in September, compared to -1.3% the previous month.

“In the clothing and footwear category, garments showed a notable decline, with inflation decreasing to 1.2% in September from 3.0% in August, contributing significantly to the overall slowdown in this sector,” Losare said. 

Other sectors that experienced declines in inflation, include:

•    Education Services: 0.0% from 5.4%.

•    Recreation, Sport and Culture: 7.8% from 12.4%.

However, some categories experienced increased inflation, including:

•    Housing, Water, Electricity, Gas, and Other Fuels: Rising to 13.7% from 8.1%.

•    Health Services: Increased to 2.4% from 1.4%.

•    Alcoholic Beverages and Tobacco: Up to 3.7% from 3.4%.

Inflation Contributions by Commodity Group

The primary contributors to the September 2024 inflation rate for the bottom 30% income households included:

1.          Food and Non-Alcoholic Beverages: Contributed 3.99 percentage points with a 66.6% share.

2.       Housing, Water, Electricity, Gas, and Other Fuels: Contributed 1.58 percentage points with a 2.3% share.

3.      Restaurants and Accommodation Services: Contributed 0.18 percentage points with a 2.9% share.

4.        Comparative Trends Across Western Visayas

Inflation rates across the Western Visayas region reveal varied trends. Aklan and Negros Occidental demonstrated significant declines, indicating improved economic stability. Antique experienced volatility, with rates peaking at 9.1% in April 2024 before dropping to 3.0% in September 2024.

Guimaras has displayed a generally decreasing inflation trend since mid-2024, with rates falling from a peak of 8.8% in May to 6.0% in September.

“The bottom 30% income HHs in Guimaras posted a 134.8 index, indicating that a typical low-income Guimarasnon household needs 1,348.0 pesos in July 2024 to purchase a basket of goods and services worth 1,000.00 pesos in 2018. The value is higher than the 133.8 CPI in June 2024 and higher than the 124.2 CPI in July 2023," Losare said.

Losare also highlighted that based on the relative poverty concept, households whose per capita income falls below the bottom 30 percent of the cumulative per capita distribution belong to the low-income group.

"The inflation rate for the bottom 30 percent income households, who are especially vulnerable to economic and social difficulties, was measured to assess their well-being," Losare said.