The headline inflation in the City of Olongapo accelerated to 5.5 percent in April 2024, from 4.8 percent in March 2024. This brings the city average inflation, from January to April 2024, to 4.7 percent. In April 2023, the inflation rate was recorded at 4.9 percent. 

The increase in inflation rate in April 2024 was mainly due to the higher annual increment in the index of housing, water, electricity, gas and other fuels at 8.6 percent, from 7.4 percent in March 2024. This was followed by the index of Transport with 6.2 percent from 5.6 percent in March 2024. The index of personal care, and miscellaneous good and services was the third main source of acceleration of the headline inflation in April 2024 with 4.8 percent, from 4.2 percent in March 2024.

Moreover, higher annual increment was observed in the indices of health with 1.7 percent in April 2024, from 1.6 percent in March 2024, and recreation, sport and culture with 3.4 percent, from 3.1 percent in March 2024.

On the other hand, lower annual increment was observed in the indices of alcoholic beverages and tobacco with 5.4 percent from 6.2 percent in March 2024, and information and communication with 2.3 percent from 2.6 percent in March 2024.

Meanwhile, the following indices retained their previous month’s inflation rates:

a.    Food and non-alcoholic beverages, 4.8 percent;
b.    Clothing and footwear, 5.4 percent;
c.    Furnishings, household equipment and routine household maintenance, 2.5 percent;
d.    Education services, 2.5 percent;
e.    Restaurants and accommodation services, 3.6 percent; and
f.    Financial services, -0.7 percent.

The food inflation rate at the city level increased to 5.0 percent during the month of April 2024, from 4.8 percent in March 2024. In April 2023, the city’s food inflation rate was recorded at 6.9 percent.

The higher food inflation was significantly influenced by the higher annual increase observed in the index of vegetables, tubers, plantains, cooking bananas and pulses with 7.4 percent, from 4.0 percent in the previous month. This was followed fish and other seafood with 0.7 percent, from 0.2 percent in March 2024. Also contributing to the uptrend of food inflation was the faster year-on-year growth of milk, other dairy products and eggs with 0.5 percent, from 0.3 percent in March 2024.

Higher annual increment was also observed in the index of ready-made food and other food products n.e.c., 3.8 percent from 3.5 percent in March 2024.

On the other hand, lower annual increment was observed in the indices of the following commodity groups:

a.    Rice, 22.4 percent from 23.2 percent;
b.    Corn, 4.7 percent from 4.8 percent;
c.    Meat and other parts of slaughtered land animals, -0.8 percent from -0.4 percent;
d.    Oils and fats, -3.6 percent from -2.6 percent;
e.    Fruits and nuts, 6.8 percent from 7.5 percent; and
f.    Sugar, confectionery and desserts, 2.1 percent from 2.6 percent.

Purchasing Power of Peso recorded at Php0.78 in April 2024

Purchasing Power of Peso (PPP) continues to weaken through the years and reached Php0.78 in April 2024 in Olongapo City. The PPP of Php0.78 implies that the Php1.00 in 2018, as the base year, values only Php0.78 in April 2024.

NORMAN L. BUNDALIAN
Chief Statistical Specialist 
Philippine Statistics Authority
Zambales Provincial Statistical Office

TECHNICAL NOTES

Consumer Price Index (CPI)
An indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year. Prices are compared to a base year and weighted by the appropriate consumption pattern. The present series uses 2012 as the base year.

Components of the CPI

Base Year/Base period
A reference date at which the index is equal to 100. The base year is 2018.

Market Basket
A sample of the variety of goods and services commonly consumed by an average Filipino household to represent the price behavior of all goods and services brought by consumers.

Weight
A value attached to the commodity or group of commodities depending on the magnitude of its distribution to the index.

Sample Outlets
Establishments where prices of commodities are quoted.

Prices of Items in Market Basket
Baseline information for prices of the items in the base year is established and monitoring the prices of items is done on a regular basis.

Inflation Rate
The annual rate of change or the year-on-year changes in the average retail prices expressed in percent.

Purchasing Power of the Peso (PPP)
The measure of how much the peso in the base period is worth in the current period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.