Year-on-Year Inflation

In September 2024, Aklan's headline inflation rate slowed significantly to 2.3 percent, down from 4.5 percent in August. This marks a notable deceleration in the pace of price increases for goods and services in the province. Compared to the same period last year, the September 2024 inflation rate is 3.3 percentage points lower.

Aklan recorded the lowest inflation among all provinces and highly-urbanized cities in Western Visayas, and its lowest rate since March 2022. However, despite this decline, Aklan's inflation remains above the national average, which was 1.9 percent in September 2024. 

Table 1. Year-on-Year Inflation Rates, All Items

In percent

 (2018=100)

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

The slowdown in Aklan’s inflation in September 2024 was largely driven by a slower increase in the prices of food and non-alcoholic beverages, which recorded an inflation rate of 2.2 percent, down from 5.8 percent in August. This turnaround was mainly due to price drops in essential food items, particularly rice, where inflation fell from 20.4 percent in August to 17.4 percent in September. Meat prices also saw a sharp decline, with inflation dropping from 19.8 percent to 10.6 percent. Ready-made food and other food products not elsewhere classified (NEC) registered a slower inflation rate of 6.6 percent, compared to 10.5 percent the previous month.

However, the prices of fish and seafood experienced a slight increase, with inflation rising to -9.5 percent in September from -10.2 percent in August. Similarly, the price index for sugar, confectionery, and desserts inched up but still remained in negative inflation territory at -7.3 percent.

The inflation rate for housing, water, electricity, gas, and other fuels also declined, falling from 6.6 percent in August to 4.5 percent in September. Transport commodities saw a sharp decrease as well, with inflation dropping from -1.9 percent in August to -4.3 percent in September. The prices of personal care, miscellaneous goods and services, and recreation, sport, and culture also increased at a slower pace, with inflation rates easing to 1.7 percent and 1.0 percent, respectively, from their August levels.

In contrast, furnishings, household equipment, and routine household maintenance saw a slight increase in inflation, rising from 0.6 percent in August to 0.9 percent in September. Similarly, restaurants and accommodation services experienced an uptick in inflation, increasing from 10.2 percent to 12.1 percent over the same period.

Major Contributors to Inflation

The overall inflation of Aklan was mainly contributed by price drop of Food and Non-Alcoholic Beverages which recorded 2.2 percent inflation with 38.0 percent share to overall inflation. This was followed by Housing, water, electricity, gas and other fuels at 4.5 percent inflation with 36.2 percent share to inflation, and Restaurants and accommodation with 12.1 percent inflation and 30.5 percent share to inflation.

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

1. Alcoholic beverage and tobacco, 3.4 percent inflation with 3.9 percent share;
2. Personal care and miscellaneous goods and services, 1.7 percent with 3.3 percent share;
3. Clothing and Footwear, 1.2 percent inflation with 1.9 percent share;
4. Furnishings, household equipment and routine household maintenance, 0.9 percent with 1.4 percent share; and
5. Health commodities, 0.6 percent with 1.1 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 September 2024 was valued at 80 centavos, lower than 82 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 P243.00 in order to buy them in September 2024. 

Moreover, 2.2 percent inflation in food commodities results in an additional P279.00 this September 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)

Source: Philippine Statistics Authority, Retail Price Survey on the Generation of Consumer Price Index

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