Nueva Ecija’s Headline Inflation Rate Remains at 5.9 Percent in July 2024

Nueva Ecija’s annual inflation remained at 5.9 percent for two consecutive months. This still brings the average inflation on the prices of goods and services in the province from January to July 2024 to 6.1 percent. In July 2023, Nueva Ecija’s inflation rate was lower at 4.9 percent. (Table A and Figure 1)

Among the provinces in Central Luzon, Nueva Ecija posted the highest inflation rate in July 2024 at 5.9 percent, and the Province of Zambales had the lowest inflation rate at 2.6 percent. On the other hand, Central Luzon’s annual inflation accelerated to 5.1 percent in July 2024. (Table A and Figure 2)

Main Drivers to the Headline Inflation

Nueva Ecija’s inflation in July 2024 was primarily brought about by the faster annual increment in the following commodity groups:

a.    Housing, water, electricity, gas, and other fuels with an 8.6 percent increment from 6.4 percent in the previous month;
b.    Health with 3.9 percent from 3.8 percent;
c.    Transport with 2.1 percent from 1.0 percent; and
d.    Education services with 8.4 percent from 7.1 percent.

In contrast, the following commodity group registered a slower annual increment:

a.    Food and non-alcoholic beverages with 8.4 percent from 9.0 percent;
b.    Alcoholic beverages and tobacco with 2.5 percent from 2.9 percent;
c.    Clothing and footwear with 3.3 percent from 4.9 percent;
d.    Furnishings, household equipment, and routine household maintenance with 2.2 percent from 3.1 percent;
e.    Information and communication with 1.5 percent from 1.6 percent;
f.    Recreation, sport, and culture with 3.2 percent from 5.0 percent;
g.    Restaurants and accommodation services with 0.0 percent from 1.1 percent; and
h.    Personal care, and miscellaneous goods and services with 3.2 percent from 3.5 percent.

Meanwhile, the financial services index remained at a zero percent annual rate in July 2024. (Table B)

Major Contributors to the Headline Inflation

Nueva Ecija’s inflation in July 2024 was primarily influenced by the following commodity group:

a.    Food and non-alcoholic beverages with 55.5 percent share or 3.27 percentage points;
b.    Housing, water, electricity, gas, and other fuels with a 29.5 percent share or 1.74 percentage points;
c.    Transport with 2.8 percent share or 0.17 percentage points;
d.    Personal care, and miscellaneous goods and services with a 2.5 percent share or 0.15 percentage points;
e.    Health with a 2.3 percent share or 0.14 percentage points; and
f.    Education services with a 2.0 percent share or 0.12 percentage points.

Food Inflation Decelerates to 9.0 Percent in July 2024

Nueva Ecija's food inflation decreased to 9.0 percent in July 2024 from 9.7 percent in June 2024. In July 2023, food inflation was lower at 8.8 percent.

Main Drivers to the downtrend of Food Inflation

The downward trend of Nueva Ecija’s food inflation in July 2024 was primarily influenced by the slower annual growth on the index of cereals and cereal products, including rice, corn, flour, bread, other bakery products, pasta products, and other cereals, with a 17.2 percent inflation rate during the month from 21.4 percent in June 2024.

Slower annual growth rates were also recorded in the indices of the following food groups:

a.    Fish and other seafood at 3.3 percent from 4.3 percent;
b.    Vegetables, tubers, plantains, cooking bananas, and pulses at 14.3 percent from 15.4 percent; and
c.    Sugar, confectionery, and desserts at -3.0 percent from -1.5 percent.

In contrast, compared with their previous month’s inflation rates, faster increments in the growth rates were observed in the indices of the following food groups during the month:

a.    Meat and other parts of slaughtered land animals at 4.8 percent from 2.8 percent;
b.    Milk, other dairy products, and eggs at 0.8 percent from -0.2 percent;
c.    Oils and fats at -4.0 percent from -4.7 percent;
d.    Fruits and nuts at 18.8 percent from 10.1 percent; and
e.    Ready-made food and other food products, n.e.c. at 5.0 percent from 4.9 percent.

Major Contributors to the Food Inflation

With a 9.0 percent inflation rate, Food inflation contributed 55.6 percent or 3.28 percentage points to the overall inflation of Nueva Ecija in July 2024. Food groups with the highest contribution to food inflation during the month were the following:

a.    Cereals and cereal products with 64.1 percent share or 5.77 percentage points;
b.    Vegetables, tubers, cooking bananas, and pulses with 12.0 percent share or 1.08 percentage points;
c.    Meat and other parts of slaughtered land animals with 10.7 percent or 0.97 percentage points;
d.    Fruits and nuts with 7.3 percent share or 0.66 percentage points;
e.    Fish and other seafood with 4.5 percent share or 0.41 percentage points; and
f.    Ready-made food and other food products, n.e.c. with a 2.5 percent share or 0.23 percentage points.

Consumer Price Index Increases to 133.9 in July 2024

The Consumer Price Index (CPI) in July 2024 increased to 133.9 compared to 132.5 in June 2024. This implies that the PhP100.00 in 2018 was averaging PhP133.90 in July 2024 or the average retail prices of the basket of goods and services expanded by 33.9 percent. In July 2023, the CPI was lower, with an average of 126.4. (Table F)

Nueva Ecija’s Purchasing Power of Peso Remains at PhP 0.75

The Purchasing Power of Peso (PPP) in the province of Nueva Ecija remained at PhP0.75 in July 2024. Hence, with 2018 as the base year, the One peso in 2018 was valued at 75 centavos in July 2024. (Figure 3 and Table F)

Technical Notes

Approved for release:
 

GIRLIE G. DE GUZMAN
(Supervising Statistical Specialist)
Officer-in-Charge