Headline Inflation

The province’s headline inflation or overall inflation decreased to 3.1 percent in December 2024 from 3.5 percent in November 2024. This brings the provincial average inflation from January to December 2024 to 4.2 percent. In December 2023, inflation rate was higher at 5.0 percent.

Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in December 2024 was primarily influenced by the slower annual increment in the index of food and non-alcoholic beverages at 2.6 percent during the month from 3.9 percent in November 2024. The annual decrease of personal care, and miscellaneous goods and services at 5.6 percent during the month from an annual decline of 6.1 percent in November 2024 also contributed to the uptrend. Moreover, lower inflation rates during the month were also noted in the indices of the following commodity groups during the month:

1.   a. Information and Communication, -0.2 percent from 0.6 percent;

2.       Clothing and Footwear, 9.3 percent from 9.5 percent; and 

3.       Recreation, sport and culture, 6.9 percent from 7.1 percent.

In contrast, the following commodity groups registered higher inflation rates during the month:

1.       Housing, water, electricity, gas and other fuels, 0.9 percent from 0.7 percent;

2.     Furnishings, household equipment and routine household maintenance, 3.9 percent from 3.6 percent;

3.       Health, 7.6 percent from 7.4 percent; 

4.       Transport, 4.8 percent from 2.9 percent; and

5.       Restaurants and accommodation services, 2.4 percent from 2.2 percent.

The indices of education and financial services commodity group retained its previous month’s annual rates. (Table 3)

Main Contributors to the Headline Inflation

The top three commodity groups contributing to the December 2024 overall inflation were the following:

1.       Food and non-alcoholic beverages with 40.1 percent share or 1.2 percentage points;

2.   b. Transport with 11.6 percent share or 0.4 percentage point; and

3.       Clothing and footwear with 11.0 percent share or 0.3 percentage point.

Food Inflation

Food inflation at the provincial level decreased to 2.5 percent in December 2024 from 4.0 percent in November 2024. In December 2023, food inflation was higher at 8.4 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in December 2024 was mainly brought about by the year-on-year decrease in cereals and cereal products which includes rice, corn, flour, bread and other bakery products, and other cereals at 0.0 percent in December 2024 from -2.6 percent in the previous month. The index of fish and other seafood also contributed to the downtrend with an inflation rate of 5.2 percent during the month from 8.6 percent in November 2024.

Lower inflation rates during the month were also noted in the indices of the following food commodity groups during the month:

1.       Milk, other dairy products and eggs, 0.7 percent from 3.3 percent;

2.       Meat and other parts of slaughtered animals, 2.4 percent from 3.1 percent;

3.       Fruits and nuts, 4.7 percent from 6.3 percent; and

4.       Ready-made food and other food products n.e.c., 4.3 percent from 5.7 percent.

Meanwhile, faster annual increase was noted in the indices of the following:

1.    a. Vegetables, tubers, plantains, cooking bananas and pulses, 13.5 percent from 8.2 percent; and

2.       Sugar, confectionary and desserts, -10.7 percent from -12.0 percent.

The indices of oils and fats food commodity group retained its previous month’s annual rates.

Main contributors to the Food Inflation

Food inflation shared 36.7 percent or 1.1 percentage points to the overall inflation in December 2024. 

:

1.      Vegetables, tubers, plantains, cooking bananas and pulses with a share of 40.1 percent or 1.0 percentage points;

2.      Fish and other seafood, with a share of 33.9 percent or 0.9 percentage points; and

3.       Meat and other parts of slaughtered land animals with a share of 16.8 percent or 0.4 percentage point.