Nueva Ecija’s Headline Inflation Rate Decelerates to 5.9 Percent

Nueva Ecija’s annual inflation slowed down to 5.9 percent in June 2024, which was 0.5 percentage points lower than 6.4 percent in May 2024. This brings the average inflation on the prices of goods and services in the province from January to June 2024 to 6.1 percent. In June 2023, Nueva Ecija’s inflation rate was lower at 4.5 percent. (Table A and Figure 1)

Among the provinces in Central Luzon, Nueva Ecija posted the highest inflation rate in June 2024 at 5.9 percent, and the Province of Aurora had the lowest inflation rate at 2.0 percent. On the other hand, Central Luzon’s annual inflation remained at 4.5 percent in June 2024. (Table A and Figure 2)
 

Main Drivers to the Downtrend of the Headline Inflation

The decrease in Nueva Ecija’s inflation in June 2024 was primarily brought about by the slower annual increment in the following commodity groups:

a.    Food and non-alcoholic beverages with a 9.0 percent increment from 9.8 percent in the previous month;
b.    Transport with 1.0 percent from 2.6 percent;
c.    Clothing and footwear with 4.9 percent from 7.6 percent;
d.    Health with 3.8 percent from 5.2 percent;
e.    Recreation, sport, and culture with 5.0 percent from 5.9 percent; and
f.    Personal care, and miscellaneous goods and services with 3.5 percent from 
3.6 percent.

In contrast, the furnishings, household equipment, and routine household maintenance posted a faster annual rate with 3.1 percent from 2.7 percent.
 

Meanwhile, the commodity group of alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; information and communication; education services; and restaurants and accommodation services retained their previous annual inflation, while the financial services index remained at a zero percent annual rate in June 2024. (Table B)
 

Major Contributors to the Headline Inflation

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

a.    Food and non-alcoholic beverages with 60.2 percent share or 3.55 percentage points;
b.    Housing, water, electricity, gas, and other fuels with a 22.2 percent share or 1.31 percentage points;
c.    Personal care, and miscellaneous goods and services with a 2.8 percent share or 0.17 percentage points;
d.    Clothing and footwear with a 2.5 percent share or 0.15 percentage points; and
e.    Health with a 2.3 percent share or 0.13 percentage points.
 

Food Inflation Registered at 9.7 Percent in June 2024

Nueva Ecija's food inflation decreased to 9.7 percent in June 2024 from 10.6 percent in May 2024. In June 2023, food inflation was lower at  7.4 percent.

Main Drivers to the downtrend of Food Inflation

The downward trend of Nueva Ecija’s food inflation in June 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 21.4 percent inflation rate during the month from 24.2 percent in May 2024.

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

a.    Fish and other seafood at 4.3 percent from 6.8 percent;
b.    Milk, other dairy products, and eggs at -0.2 percent from 2.5 percent;
c.    Oils and fats at -4.7 percent from -2.9 percent;
d.    Sugar, confectionery, and desserts at -1.5 percent from -0.3 percent; and
e.    Ready-made food and other food products, n.e.c. at 4.9 percent from 5.7 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 2.8 percent from 0.7 percent
         b.    Fruits and nuts at 10.1 percent from 7.0 percent; and
         c.    Vegetables, tubers, plantains, cooking bananas, and pulses at 15.4 percent from 13.8 percent.

Major Contributors to the Food Inflation

With a 9.7 percent inflation rate, Food inflation contributed 60.2 percent or 3.55 percentage points to the overall inflation of Nueva Ecija in June 2024. Food groups with the highest contribution to food inflation during the month were the following:

a.    Cereals and cereal products with 72.7 percent share or 7.05 percentage points;
b.    Vegetables, tubers, cooking bananas, and pulses with 11.8 percent share or 1.14 percentage points;
c.    Meat and other parts of slaughtered land animals with 5.7 percent or 0.55 percentage points;
d.    Fish and other seafood with 5.4 percent share or 0.52 percentage points;
e.    Fruits and nuts with 3.6 percent share or 0.35 percentage points; and
f.    Ready-made food and other food products, n.e.c. with a 2.3 percent share or 0.22 percentage points.

Consumer Price Index Increases to 132.5 in June 2024

The Consumer Price Index (CPI) in June 2024 increased to 132.5 compared to 131.9 in May 2024. This implies that the PhP100.00 in 2018 was averaging PhP132.50 in June 2024 or the average retail prices of the basket of goods and services expanded by 32.5 percent. In June 2023, the CPI was lower, with an average of 125.1. (Table F)

Nueva Ecija’s Purchasing Power of Peso Decreases to PhP 0.75

The Purchasing Power of Peso (PPP) in the province of Nueva Ecija went down at PhP0.76 in May 2024. Hence, with 2018 as the base year, the One peso in 2018 was valued at 75 centavos in June 2024. (Figure 3 and Table F)

 Technical Notes

Approved for release:

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