The headline inflation rate for the bottom 30% of income households in the province of Capiz decreased from 5.2 percent in August 2024 to 4.2 percent in September 2024. As a result, the average inflation rate for this income group from January to September 2024 is now 4.5 percent. In comparison, the inflation rate in September 2023 was significantly higher at 8.1 percent. (See Table A and Figure 1.)

The main driver of the downward trend of the overall inflation for this income group in September 2024 was the slower year-on-year growth of the following commodity groups:

1. Food and non-alcoholic beverages, from 7.7 to 6.4 percent; 

2. Housing, Water, Electricity, Gas and Other Fuels, from 3.2 to 1.8 percent

3. Recreation, Sport and Culture from 3.0 percent from 2.6 percent;

4. Health, 1.3 percent from 1.1 percent

5. Personal Care, and Miscellaneous Goods and Services, 2.5 percent from 2.4 percent; 

6. Furnishings, Household Equipment and Routine Household Maintenance, from 1.9 to 1.8 percent; and

7. Transport, -3.1 percent from -1.5 percent.

In contrast, higher annual increments were noted in the indices of Alcoholic beverages and Tobacco from 2.6 to 3.5 percent during the month.

The indices of the rest of the commodity groups retain their respective previous month’s annual rates. (Table B and Table C)

In September 2024, food inflation for households in the bottom 30% income households at the provincial level decreased to 6.8 percent, down from 8.2 percent in the previous month. This marks a significant drop from September 2023, when the inflation rate was 12.0 percent. (See Table B)

The decline in food inflation for households in the bottom 30% income households was primarily attributed to a slower annual growth rate in Meat and other Parts of Slaughtered Land Animals, which rose by 11.3 percent in September 2024 compared to a 20.4 percent increase in August 2024. Corn also played a role in this decline, with its growth rate dropping to 0.9 percent in September from 3.0 percent in August. Additionally, the index for Vegetables, Tubers, Cooking Bananas, and Pulses experienced a slower annual decrease of 3.8 percent, an improvement from the 5.4 percent decline noted in August. The indices for Milk, Other Dairy Products, and Eggs further contributed to easing food inflation, with prices rising by 1.3 percent in September, down from 2.2 percent in August.

Conversely, certain food prices increased significantly during the same period. The Rice index surged to 21.3 percent in September, up from 17.8 percent in August. Similarly, the index for Sugar, Confectionery, and Desserts showed an annual increase of 2.2 percent in September, recovering from a decline of 4.1 percent the previous month.