YEAR-ON-YEAR INFLATION RATES

The headline inflation rate or the year-on-year change in the prices of goods and services commonly purchased by people in the province of Sultan Kudarat slowed down to 0.9 percent in November 2024 compared to 3.2 percent recorded in October 2024. This brings the provincial average inflation from January to November 2024 at 4.1 percent. In November 2023, the inflation rate was higher at 7.0 percent. (Table 1, Table 2, and Figure 1)

The downtrend in the overall inflation in November 2024 was primarily influenced by the lower annual growth rate in the index of Food and Non-Alcoholic Beverages at 0.6 percent inflation compared to 4.4 percent in October 2024. This was followed by Housing, Water, Electricity, Gas and Other Fuels at 2.3 percent compared to 4.9 percent in October 2024, and Restaurants and Accommodation services at 2.5 percent from 3.8 percent in October 2024.

In addition, lower annual increments were also noted in the indices of the following commodity groups during the month compared to October 2024 annual rates:

a.Clothing and Footwear at 0.5 percent from 0.7 percent
b.Furnishings, Household Equipment and Routine Household Maintenance at 2.4 percent from 3.0 percent, and
c.Information and Communication at 0.2 percent from 0.4 percent.
In contrast, the four (4) commodity groups registered higher inflation rates during the month. 
a.Alcoholic Beverages and Tobacco at 1.3 percent from 0.8 percent;
b.Health at 1.3 percent from 1.2 percent;
d.Recreation, Sport and Culture at 3.1 percent from 3.0 percent, and
e.Personal Care, and Miscellaneous Goods and Services at 2.0 percent from 1.8 percent.

Among the thirteen-commodity group only Transport showed deflation during the month at -1.6 percent.

Meanwhile the indices of the rest of the commodity groups retained their respective previous month’s inflation rate (Table 3)

Food Inflation, likewise, slowed down to 0.4 percent inflation compared to 4.5 percent reported in October 2024. In November 2023, food inflation was higher at 11.5 percent.

The deceleration of food inflation in November 2024 was primarily brought about by the faster year-on-year decline of Rice at -1.6 percent during the month from 14.3 percent in October 2024. This was followed by Fruits and nuts at 2.8 percent from 12.4 percent in October 2024, and Fish and other seafood at 1.6 percent from 2.4 percent.

The following food group also contributed to the downward trend of food inflation:
a. Corn at -3.4 percent deflation from -1.2 percent deflation;
b. Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals at 1.2 percent from 1.9 percent; and
c. Milk, other dairy products and eggs at 2.2 percent from 3.7 percent.

In contrast, higher annual growth rates during the month were observed in the indices of the following food groups:
a. Meat and other parts of slaughtered land animals at 1.2 percent from 0.5 percent;
b. Oils and Fats at 12.9 percent from 9.1 percent; 
c. Vegetables, tubers, plantains, cooking bananas and pulses at 1.0 percent from -10.6 percent deflation; and
d. Ready-made food and other food products n.e.c., at 4.1 percent from 3.4 percent.

Meanwhile, Sugar, confectionery and desserts retained its previous month rate at -8.7 percent deflation. (Table 4)

TECHNICAL NOTES

Consumer Price Index (CPI):
❖A measure of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to base year.
❖It measures the composite change in the consumer prices of various commodities overtime.
❖It stands for the percentage change in the average prices of goods and services commonly bought by a group of consumers from the base year.

Components of the CPI:
Market Basket
❖refers to sample of goods and services commonly purchased by a particular group of consumers in a particular area.
Weight
❖a value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.
Base Period
❖a period usually a year, at which the index number is set to 100 or it is the reference point of the index number series.
Index Method
❖gives the formula used in computing the index number.
Sample Outlets
❖establishment or retail outlets where prices of commodities/services are collected or quoted.

Inflation Rate (IR)
❖rate of change in the average price level as measured by the CPI between two periods.
❖it is equivalent to the decline in the internal purchasing of the peso.
❖it is derived indicator by comparing the CPI between two periods, usually a year.

Approved for Release:

MARIFI P. DE ASIS
OIC-Chief Statistical Specialist

For inquiries, please contact:

LOVELY JOY M. PARAS
Administrative Aide VI
Provincial Focal Person