1. Guimaras Headline 

Inflation The Guimaras’ headline or overall inflation moved a bit faster to 2.8 percent in December 2024 from 2.5 percent in November 2024, bringing the provincial average inflation from January to December 2024 to 5.3 percent. The December 2023 inflation rate was at 5.5 percent. (Figure 1) 

1.1 Main Drivers to the Upward Trend of the Headline Inflation 

The uptrend in the overall inflation in December 2024 was primarily influenced by the increased year-on-year price change in the heavily weighted Food and Non-Alcoholic Beverages at 4.6 percent during the month, from 2.4 percent in November 2024. The faster annual price change on Transport at 2.1 percent in December 2024 from -0.9 percent in the previous month and Clothing and Footwear at 2.4 percent from 0.3 percent a month ago also contributed to the faster inflation rate.

Likewise, the fast-moving inflation rate was also noted in the other two commodity groups: Personal Care, and Miscellaneous Goods and Services at 1.5 percent in December from 1.2 percent in November 2024; and Furnishings, Household Equipment and Routine Household Maintenance at -0.3 percent from -0.5 percent in November 2024.

In contrast, the following were the items with slower inflation in December than in November 2024:

 • Alcoholic Beverages and Tobacco,1.5 percent from 3.0 percent 

• Housing, Water, Electricity, Gas and Other Fuels, 2.6 percent from 6.6 percent 

• Health, 2.7 percent from 3.8 percent 

• Recreation, Sport and Culture, 5.7 percent from 6.0 percent 

• Restaurants and Accommodation Services, -5.7 percent from -0.5 percent 

• Sugar, confectionery and desserts, -8.3 percent from -8.7 percent

While the other 3 commodities retained their previous month’s inflation rate (Information and Communication: 3.3 percent, Education Services: 0.0 percent, and Financial Services; 0.0 percent).

1.2 Main Contributors to the Headline Inflation

In December 2024, the overall inflation rate in Guimaras was primarily influenced by three major commodity groups.

The largest contributor was food and non-alcoholic beverages at 77.9 percent of the province’s inflation rate, or 2.18 percentage points, with the notable surge primarily driven by a significant 17.3% increase in rice prices, impacting overall food costs.

Housing, water, electricity, gas, and other fuels followed closely at 13.9 percent, or 0.39 percentage points contribution to the inflation, with a significant impact from electricity prices across all sources—coal, solar, and hydro—showing an inflation rate of 7.6%.

Lastly, Transportation contributed 4.9 percent, or 0.14 percentage points, to the overall inflation with the increase largely driven by a remarkable 42.2% inflation rate in Passenger Transport by Sea and Inland Waterway.

2. Guimaras Core Inflation

In December 2024, core inflation in Guimaras rose to 1.7%, up from 1.2% in November. This increase indicates a slight acceleration in underlying inflation.

Core inflation excludes volatile items such as food and energy, providing a clearer perspective on long-term price trends. The rise in core inflation suggests that, beyond the fluctuations in food and energy prices, other sectors of the economy—such as housing, transportation, and personal services—are experiencing ongoing price pressures.

These sectors are seeing more sustained price increases, which indicates that inflation is becoming more widespread across the economy. The higher core inflation was primarily driven by a significant surge in electricity prices (7.6%) and increased transportation costs, particularly for passenger transport.

While some areas, such as alcoholic beverages, healthcare, and recreation, experienced slower inflation, the overall increase in core inflation highlights a broader trend of growing inflationary pressures outside food and energy. This suggests that while inflation may stabilize in some sectors, other areas continue to face rising costs, contributing to a steadily increasing inflationary environment in Guimaras.

3. Headline Inflation per province in Region VI

Inflation rates across the provinces in Western Visayas exhibited varying trends throughout 2024. Aklan, Antique, and Capiz showed consistent fluctuations, while Iloilo, Guimaras, and Negros Occidental experienced more significant increases and decreases.

In Aklan, inflation gradually declined from 3.9% in December 2023 to 1.4% in December 2024. This decrease reflects a steady reduction in price pressures, with notable drops occurring in the later months of 2024.

Similarly, Antique's inflation rate fell from 4.5% in December 2023 to 1.5% in December 2024, demonstrating a monthly fluctuating trends throughout the year. Capiz followed a comparable pattern, starting at 4.0% in December 2023 and finishing at 2.8% in December 2024. Although inflation dipped in most months, moderate price increases were still observed by year-end.

In contrast, Iloilo and Guimaras experienced more volatile inflation rates. Iloilo began with an inflation rate of 2.7% in December 2023, peaked at 7.2% in March 2024, and then stabilized to close the year at 4.2%.

Guimaras had one of the highest inflation rates in the region in December 2023 at 5.5%. Its rate fluctuated throughout 2024, reaching a peak of 7.2% in March before ending the year at 2.8%, indicating a significant decline in inflation pressures in the latter months.

Negros Occidental displayed a similar trend, starting at 3.5% in December 2023, fluctuated during the year, and closed at 3.7% in December 2024.

Overall, the inflation patterns in Western Visayas highlight regional differences in price pressures. Aklan and Antique demonstrated steady decreases, while other provinces, particularly Iloilo, Guimaras, and Negros Occidental, experienced more fluctuating inflation trends.

4. Guimaras Purchasing Power of the Peso (PPP)

The Purchasing Power of the Peso (PPP) in Guimaras reflects the real value of money in terms of its ability to purchase goods and services, adjusted for inflation.

A PPP of 1.00 indicates that the peso retains its full value compared to the base year, while a value less than 1.00 shows that inflation has reduced the purchasing power of the peso over time. Since the base year of 2018, Guimaras has seen a consistent decrease in PPP, highlighting a gradual loss in the peso value.

In December 2023, the PPP in Guimaras was at 0.77, meaning that one peso could buy only 77% of the goods and services it could have purchased in 2018. This depreciation continued in 2024, with the PPP slightly dropping to 0.76 in January.

Throughout the year, the PPP fluctuated between 0.75 and 0.76, reflecting a consistent erosion in purchasing power. From February to March 2024, the PPP remained at 0.75.

Between April and August, it stabilized at 0.76, suggesting that while inflation persisted, the peso value remained relatively steady.

However, in the last four months of the year (September to December), the PPP hovered between 0.75 and 0.76, showing little improvement or deterioration in purchasing power. This indicates that inflation continued to have a moderate, ongoing impact on the residents of Guimaras.

Overall, while fluctuations in PPP were minimal, the trend points to a steady reduction in purchasing power, reflecting the persistent influence of inflation across various sectors like food, housing, and transportation.

DEFINITION OF TERMS

Inflation Rate

Rate of change in the Consumer Price Index. Its formula is given by:

Year-on-year inflation 

Rate of change in the Consumer Price Index in a specific period of the current year relative to the same period in the previous year.

Month-on-Month inflation 

Rate of change in the Consumer Price Index in a specific period of the current month relative to the previous month in the current year.

Consumer Price Index 

Indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by an average Filipino household for their day-to-day consumption relative to a base year. It is most widely used in the calculation of the inflation rate and purchasing power of the peso (PPP). Relative to this, daily, weekly, and bi-monthly price surveys are conducted nationwide at the provincial offices including the District Offices of the National Capital Region (NCR) to be able to generate monthly CPI for All Income Households and CPI for the Bottom 30% Income Households. Indicators produced from price surveys are regarded as designated statistics. The seasonally adjusted CPI provides comparisons after removing the seasonal variations that may affect the series. The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2018) weights given by.

Purchasing Power of Peso (PPP) 

Indicates how much the Philippine Peso is worth in each period relative to its value in a base period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100 given by the equation:

Headline Inflation

Defined as the rate of change in the weighted average prices of all goods and services in the CPI basket while Core Inflation refers to the rate of change in the CPI which excludes the following item/commodity groups: rice, corn, fruits and vegetables, and fuel items.