Inflation hits 7.0% for Guimaras’ low-income families

Inflation for low-income households in Guimaras province In February 2024 surged to 7.0%, up from 5.5% the previous month, driven by a significant 9.6% increase in the retail cost of food items, according to recent data from the Philippine Statistics Authority (PSA).

“The inflation rate for food items, at 9.6%, was primarily due to the sharp increase in rice prices, which jumped from 18.1% in January 2024 to 24.6% in February, accounting for an 87.1% share. Rice prices alone contributed 62.4% to the overall inflation in food items for low-income households,” Provincial Statistics Officer Nelida B. Losare said.

Losare added that food items, together with non-alcoholic beverages, which experienced a 9.3% inflation rate, were the main contributors to the inflation trend for households in the bottom 30% income bracket, with an 83.5% share. This was followed by restaurants and accommodation services at 12.8% inflation, and transport, which saw a decrease of 1.8% inflation, contributing 5.2% and 3.2%, respectively.

The rise in prices for restaurants, cafés, and similar services, which saw inflation increase from 10.1% in January to 12.9% in February 2024, mainly drove the inflation in restaurants and accommodation services. Meanwhile, the transport sector’s deflation of 1.8% was influenced by the reduced rate of decline in gasoline prices from -10.5% to -7.0%.

“In February, the contributions to inflation for the bottom 30% income households were dominated by food and non-alcoholic beverages, with an 83.5% share, followed by restaurants and accommodation services at 12.8% inflation, and alcoholic beverages and tobacco at 9.8% inflation, contributing 6.6% and 5.5%, respectively,” Losare detailed.

Other significant contributors to the 9.3% inflation rate for food and non-alcoholic beverages included fresh, chilled, or frozen pork with a 32.7% inflation rate, contributing 9.9%, and fresh or chilled tomatoes with a 61.1% inflation rate, contributing 10.2%.

Losare further explained that the inflation rate represents the rate of change in the Consumer Price Index (CPI) compared to the same period in the previous year or month. “As of February 2024, low-income households in Guimaras had a CPI of 133.5, indicating that they needed 1,335 pesos to purchase the same basket of goods and services that cost 1,000 pesos in 2018. This figure is an increase from the 131.3 CPI in January 2024 and 124.8 CPI in February 2023,” she noted.

Highlighting the significance of monitoring inflation rates for the welfare of low-income groups, Losare said, “We calculate the inflation rate for the bottom 30% income households, the most economically and socially vulnerable group, to keep track of their welfare.”