Year-on-Year Inflation

In June 2024, the headline inflation in Aklan grew at a faster rate of 6.2 percent compared to the 4.5 percent recorded in the previous month. It also recorded a notable increase of 0.9 percentage points from the 5.3 percent inflation observed in June 2023. Aklan's inflation rate exceeds both the national and regional rates, standing at 3.7 percent and 4.9 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 a faster inflation of 11.2 percent from 8.8 percent in the previous month. It was observed that Rice mainly brought the lower inflation of Food and non-alcoholic beverages, showing an increase from 32.9 percent in May 2024 to 35.4 percent inflation in June 2024. Following this, Housing, water, electricity, gas, and other fuels displayed an increase in inflation from -0.3 percent in the previous month to 2.6 percent in June. Furnishings, household equipment and routine household maintenance increased from 0.2 percent a month ago to 0.5 percent reported this month, while Alcoholic beverage and tobacco grew from 4.6 percent in May 2024 to 4.9 percent in June 2024. Additionally, Recreation, sport and culture and Health commodities showed uptick in inflation this June at 4.6 percent and 1.3 percent, respectively.

Inflation of the rest of the major commodities either decline or remained stable in June 2024 from May 2024.

Moreover, among the food commodities, Meat contributed the highest to the uptick in inflation, having 18.4 percent inflation in May 2024 to 26.7 percent in June 2024. Other food products also went up from May to June 2024:

• Vegetables, tubers, plantains, cooking bananas, and pulses, from -10.2 percent to -0.9 percent;
• Cereals and cereal products, from 26.0 percent to 27.9 percent; and 
• Fruits and nuts, from -2.6 percent to -1.8 percent.

Major Contributors to Inflation

The overall inflation of Aklan was mainly contributed by price hike of Food and Non-Alcoholic Beverages which recorded 11.2 percent inflation with 75.3 percent share to overall inflation. This was followed by Housing, water, electricity, gas and other fuels at 2.6 percent inflation with 8.1 percent share to inflation, and Restaurants and accommodation with 7.1 percent inflation and 7.0 percent share to inflation.

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

• Personal care, and miscellaneous goods and services, 4.0 percent inflation with 3.0 percent share;
• Transport, 1.6 percent inflation with 2.4 percent share;
• Alcoholic beverage and tobacco, 4.9 percent inflation with 2.2 percent share; and
• Recreation, sport and culture, 4.6 percent inflation with 1.0 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 June 2024 was valued at 80 centavos, lower than 84 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 P258.00 in order to buy them in June 2024. 

Moreover, 11.2 percent inflation in food commodities results in an additional P307.00 this June 2024 in order to buy the same basket of food commodities worth P1000.00 in 2018.

Table 2. Consumer Price Index by Subgroup, Month-on-Month and Year-on-Year Percent Changes
in Aklan
(2018=100)

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