In October 2024, the headline inflation in Aklan grew at a faster rate of 3.1 percent compared to the 2.3 percent recorded in the previous month. However, it is lower by 0.9 percentage points from the 4.0 percent inflation observed in October 2023. Aklan's inflation rate exceeds the national rate but lower than the regional rate, standing at 2.3 percent and 3.9 percent, respectively.

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

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 4.0 percent from 2.2 percent in the previous month. It was observed that Rice mainly brought the higher inflation of Food and Non-alcoholic Beverages, showing an increase from 17.4 percent in September 2024 to 22.2 percent inflation in October 2024.

Among other food commodities, Fish and other seafoods also had faster inflation this month from -9.5 percent to -3.6 percent, as well as, Vegetables, tubers, plantains, cooking bananas and pulses which grew from -20.2 percent to -16.9 percent and Sugar and related products increased from -7.3 percent to -4.5 percent from September to October 2024.

On the contrary, price of other food products increased slower from September to October 2024:

a. Meat and other parts of slaughtered land animals, from 10.6 percent to 8.8 percent;
b. Milk, other dairy products and eggs, from 2.0 percent to 1.9 percent;
c. Oils and fats, from -0.5 percent to -0.7 percent;
d. Fruits and nuts, from 1.0 percent to -1.8 percent; and
e. Ready-made food and other food products n.e.c., from 6.6 percent to 6.2 percent.

Following the Food and Non-Alcoholic Beverages, Transport displayed an increase in inflation from -4.3 percent in the previous month to -2.9 percent in October, while, Alcoholic Beverages inflated from 3.4 percent a month ago to 3.5 percent reported this month.

Inflation of the rest of the major commodities either decline or remained stable in October 2024
from September 2024.

Major Contributors to Inflation

The overall inflation of Aklan was mainly contributed by price hike of Food and Non-Alcoholic Beverages which recorded 4.0 percent inflation with 51.6 percent share to overall inflation. This was followed by Housing, water, electricity, gas and other fuels at 4.3 percent inflation with 25.8 percent share to inflation, and Restaurants and accommodation with 11.9 percent inflation and 22.4 percent share to inflation.

Other major commodity groups also contributed to the province’s inflation rate in October 2024:
a. Alcoholic beverages and tobacco, 3.5 percent inflation with 3.0 percent share;
b. Personal care and Miscellaneous goods and services, 1.7 percent inflation with 2.5
percent share;
c. Clothing and footwear, 1.1 percent inflation with 1.3 percent share; and
d. Furnishings, Household Equipment and Routine Household Maintenance, 0.9 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 October 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 P247.00 in order to buy them in October 2024.

Moreover, 4.0 percent inflation in food commodities results in an additional P284.00 this October 2024 in order to buy the same basket of food commodities worth P1000.00 in 2018.

EXPLANATORY

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