Headline Inflation

The headline inflation of Iloilo or the overall inflation slowed down further to 2.7 percent in December 2023, the lowest inflation rate of the year. Furthermore, it decreased from 3.2 percent in November 2023, and 9.4 percent in December 2022.    
The headline inflation rate of Iloilo was lower than the regional inflation rate of Western Visayas with 3.2 percent and also lower than the Philippines’s 3.9 percent for the month of December 2023.

Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in December 2023 was primarily driven by the deflation of prices in the Housing, Water, Electricity, Gas, and Other Fuels at -7.5 percent inflation rate in December 2023 from -3.4 percent in the previous month. The second major driver of the decreasing trend in the headline inflation was Personal Care, and Miscellaneous Goods and Services with 2.6 percent from 3.9 percent. Restaurants and Accommodation Services followed with a 3.0 percent from 3.6 percent last month.            
Other contributors to the downtrend are as follows:
a. Recreation, Sports and Culture, 5.3 percent from 7.1 percent;
b. Furnishings, Household Equipment and Routine Household Maintenance, 5.7 
percent from the 6.1 percent;
c. Information and Communication, 2.4 percent from 2.9 percent;
d. Alcoholic Beverages and Tobacco, 8.7 percent from 9.1 percent; and
e. Clothing and Footwear, 3.7 percent from 3.9 percent.

On the other hand, there was a year-on-year growth in the indices of the following commodity groups:
a. Food and Non-Alcoholic Beverages, 6.7 percent from 6.2 percent;
b. Health, 3.9 percent from 2.4 percent; and
c. Transport, -2.5 percent from -3.2 percent.
Meanwhile, there were no changes in the indices of Education Services and Financial 
Services.

Main Contributors to the Headline Inflation

The top three commodity groups that contributed to the December 2023 headline 
inflation were the following:
a. Food and Non-Alcoholic Beverages, 115.9 percent share or 3.13 percentage 
points.
b. Alcoholic Beverages and Tobacco, 9.1 percent share of 0.25 percentage points.
c. Furnishings, Household Equipment and Routine Household Maintenance, 8.0 
percent share or 0.21 percentage points.

Annual Average Inflation Rate

Iloilo’s annual average inflation rate for 2023 stood at 6.2 percent. This rate was higher than the 2022 annual average inflation rate of 5.1 percent.                 
Compared with their respective annual average inflation rates in 2022, the indices following commodity groups recorded higher annual average inflation rates in 2023:
a. Food and Non-Alcoholic Beverages, 8.6 percent from 5.2 percent;
b. Alcoholic Beverages and Tobacco, 9.0 percent from 8.8 percent;
c. Clothing and Footwear, 4.1 percent from 2.6 percent;
d. Housing, Water, Electricity, Gas and Other Fuels, 4.9 percent from 0.1 percent;
e. Furnishings, Household Equipment, and Routine Household Maintenance, 7.7 
percent from 4.5 percent;                                             f. Health, 2.0 percent from 0.4 percent;
g. Information and Communication, 3.2 percent from 1.3 percent;
h. Recreation, Sport and Culture, 5.5 percent from 5.1 percent;
i. Education Services, 3.0 percent from 0.9 percent;
j. Restaurants and Accommodation Services, 7.6 percent from 6.3 percent; and
k. Personal Care, and Miscellaneous Goods and Services, 5.2 percent from 3.8 
percent.                                                                          
On the contrary, slower annual average year-on-year increases were observed in the indices of Transport at 0.9 percent in 2023 from 17.2 percent in 2022 and Financial Services at 0.0 percent from 8.6 percent in the previous year.

(Original Signed by SS II Donna Rose Sequio, OIC-SSS)
JERRY L. DOLUTAN
(Supervising Statistical Specialist)
Officer-in-Charge