In a notable economic shift, Aklan experienced a significant acceleration in the inflation rate, reaching 3.5 percent in February 2024, compared to the reported 3.0 percent in January of the same year. The surge in inflation is attributed to the marked increase in the Consumer Price Index (CPI), reaching 123.2 in February 2024 from the recorded 119.0 CPI in February 2023.

The Consumer Price Index, reflecting the overall change in a representative basket of goods and services from the base year 2018, underscores the challenge for consumers. On average, a consumer now requires an additional Php123.20 to afford the same 1000-peso worth of goods and services from 2018. This has consequently led to a decrease in the purchasing power of the peso, dropping from 84 centavos in the previous year to 81 centavos in the current month.

These economic indicators play a crucial role in decision-making processes for planners, financial markets, businesses, and consumers alike.

The surge in inflation was primarily driven by the increase in prices of Housing, Water, Electricity, Gas, and Other Fuels (HWEG). After experiencing -4.9 percent inflation in the past month, the category saw a milder decrease of -2.3 percent during the reference month. The acceleration in Electricity inflation further contributed to the overall inflation of HWEG, reaching -7.8 percent in February 2024 compared to -20.0 percent in the previous month.

The Transportation sector followed with inflation of -0.2 percent in February 2024, showing a notable improvement from the -2.1 percent recorded in the prior month. Similarly, the inflation of Restaurants and accommodation services increased from 5.3 percent to 6.2 percent in February.

On the other hand, the inflation of Food and non-alcoholic beverages exhibited a slowdown, dropping from 7.8 percent in January 2024 to 7.2 percent in February of the same year. Among the various food commodities, the slower inflation of Fish and seafood played a significant role in the downturn, reaching -5.2 percent inflation compared to the 1.1 percent inflation in the previous month.

Rice inflation also contributed to the overall deceleration, showing a decrease to 22.6 percent in February 2024 from 23.3 percent in January 2024. Additionally, Fruits and nuts experienced a slowdown, dropping to 6.9 percent in February 2024 from 10.4 percent in January.

Furthermore, the other three major commodities, namely, Ready-made food and other food products, including condiments and instant noodles, Oils and fats, and Sugar, confectionery, and desserts, also exhibited slower inflation in February compared to January 2024. These nuanced shifts in various sectors contribute to the dynamic economic landscape of Aklan in the early months of 2024.

ENGR. ANTONET B. CATUBUAN
Chief Statistical Specialist