The annual inflation rate of Central Luzon increased to 5.1 percent in July 2024 from 4.5 percent in June 2024. This brings the regional average inflation from January to July 2024 to 4.6 percent. In July 2023, inflation was higher at 5.2 percent.  (Figure 1)

Among the 17 regions, Northern Mindanao  and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) both recorded the highest inflation rate at 5.7 percent in July 2024. 
They were followed by Zamboanga Peninsula, which had an inflation rate of 5.3 percent. Central Luzon ranked fourth, along with Davao Region, with an inflation rate of 5.1 percent. On the other hand, Ilocos Region had the lowest inflation at 3.3 percent (Figure 2).

Meanwhile, the country’s inflation rate accelerated from 3.7 percent in June 2024 to 4.4 percent in July 2024.

Figure 2 shows the annual inflation rates of the different regions in the Philippines in July 2024.

The rise in overall inflation in July 2024 in the region was primarily influenced by the faster year-on-year increase in the heavily weighted food and non-alcoholic beverages which rose to 6.4 percent in July 2024 from 5.9 percent in June 2024. The faster annual growth rate of housing, water, electricity, gas, and other fuels at 4.6 percent from 
2.4 percent also contributed to the upward trend. Despite its deceleration, restaurants and accommodation services remained the third top contributor in the July 2024 inflation in Central Luzon with an inflation rate of 6.9 percent. 
 

Consequently, faster increments were also observed in the following commodity groups:

•    Education services, 7.7 percent from 6.1 percent;
•    Transport, 3.9 percent from 3.4 percent; and
•    Information and communication, 0.6 percent from 0.5 percent.

Conversely, slower increments were observed in following commodity groups in July 2024:
•    Restaurants and accommodation services, 6.9 percent from 7.2 percent;
•    Recreation, sport and culture, 4.0 percent from 4.4 percent;
•    Alcoholic beverages and tobacco, 3.4 percent from 3.8 percent;
•    Clothing and footwear, 3.4 percent from 3.8 percent;
•    Health, 3.1 percent from 3.8 percent; and
•    Furnishings, household equipment and routine household maintenance, 2.6 percent from 2.7 percent.

Meanwhile, the following commodity groups remained to have constant inflation rates:

•    Personal care, and miscellaneous goods and service, 3.8 percent; and
•    Financial services, -0.3 percent.
 

Food inflation in Central Luzon increased from 6.4 percent in June 2024 to 6.9 percent in July 2024. In July 2023, food inflation was lower at 6.7 percent.

The acceleration of food inflation was mainly driven by the year-on-year increase in the inflation rate of cereals and cereal products at 15.5 percent followed by meat and other parts of slaughtered land animals at 6.4 percent and vegetables, tubers, plantains, cooking bananas and pulses at 9.4 percent.

Additionally, the following food indices contributed to the upward trend in food inflation in July 2024:
•    Fruits and nuts, 7.0 percent from 3.8 percent;
•    Ready-Made food and other food products n.e.c., 5.2 percent from 4.8 percent;
•    Fish and other seafood, -0.1 percent from -1.4 percent;
•    Milk, other dairy products and eggs, -0.4 percent from -1.5 percent; and
•    Oils and fats, -4.3 percent from -5.6 percent.

Meanwhile, sugar, confectionary, and desserts posted a negative inflation rate of -1.4 percent in July 2024 from -1.0 percent in June 2024.
 

Relative to June 2024 inflation rate, six provinces and the City of Olongapo, exhibited higher inflation rates in July 2024.

Despite retaining its inflation rate at 5.9 percent, Nueva Ecija still recorded the highest inflation rate in July 2024, while Zambales registered the lowest inflation at 2.6 percent (Figure 3).
 

ARLENE M. DIVINO
Regional Director 
PSA RSSO 03