INFLATION RATES FOR ALL ITEMS
             The headline inflation rate in Lanao del Sur province increased further to 2.5 percent in November 2024 from 1.9 percent in October 2024 (see Figure 1). This represents 1.1 percentage points lower from its level 3.6% in the same month last year. Moreover, Lanao del Sur posted a 3.5 percent year-to-date inflation rate in All items. (see Table 1)

The increase in price in the following Commodity Groups in province’s inflation was mainly brought about by the higher annual increases in the index for Food and Non-Alcoholic Beverages at 2.9 percent, Housing, Water, Electricity, Gas and Other Fuels at 1.3 percent, Health at 5.0 percent and Transport at negative 2.6 percent. Meanwhile, the following commodity groups recorded slow down inflation rates in November 2024:
a. Alcoholic beverages and tobacco at 3.2 percent;
b. Furnishing, Household Equipment and Routine Maintenance of the House at 3.3 percent;
c. Recreation, sport and culture at 3.1 percent; and
d. Restaurants and Accommodation Services at 3.9 percent. On the other hand, the following commodity groups shows retained their previous month’s inflation rate in November 2024:
a. Clothing and footwear at 3.1 percent;
b. Information and Communication at 1.0 percent;
c. Education services at 8.7 percent;
d. Financial services at 0.0 percent; and
e. Personal care, and miscellaneous goods and services at 4.2 percent.

Table 2. Inflation Rate by Commodity Group for All Income Households, Lanao
del Sur: November 2023, October 2024, and November 2024
(In percent, 2018=100)

INFLATION RATES FOR FOOD ITEMS
              For food index, it increased further by 2.8 percent in November 2024, from 1.6 percent in the previous month. In November 2023, food index was higher at 5.1 percent.

             The increase in the province’s food inflation rate was mainly brought about by the higher annual increases in the index for Cereals and cereal products at 4.4 percent, Rice at 4.5 percent and Fish and other seafood at 2.2 percent. Also contributing to the uptrend in the overall food inflation during the period were the higher annual increment in the indices of the following food commodity groups as compared with their previous month’s inflation rates:

a. Vegetables, tubers, plantains, cooking bananas and pulses at negative 2.4 percent;
b. Milk, Other Dairy Products, and Eggs at 11.8 percent;
c. Fruits and nuts at negative 1.2 percent;
d. Meat and other parts of slaughtered land animal at 5.6 percent;
e. Oils and Fats at 1.5 percent; and
f. Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals at 3.9 percent.
Meanwhile, the annual slower indices on the commodity groups are the  following: (See table 3)
a. Sugar, Confectionery and Desserts at negative 5.8 percent;
b. Ready-Made Food and Other Food Products N.E.C at 2.2 percent.

Table 3. Inflation Rate by Commodity Group for Food, Lanao
del Sur: November 2023, October 2024, and November 2024
(In percent, 2018=100)

PURCHASING POWER OF PESO

              Purchasing Power of Peso (PPP) is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines. As shown in Figure 2, Lanao del Sur, PPP is retained its previous month at 0.80 as of November 2024.

TECHNICAL NOTES:
Consumer Price Index (CPI)

The CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Uses of CPI

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy.

Computation of CPI

The computation of the CPI involves consideration of the following important points: 

a. Base Period

The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.

b. Market Basket

A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers.

c. Weighting System

The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.

d. Formula

The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2006) weight.

e. Geographic Coverage

CPI values are computed at the national, regional, and provincial levels, and for selected cities.

Inflation Rate

the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of peso.

Headline Inflation

refers to the rate of change in the CPI, a measure of the average standard “basket” of goods and services consumed by a typical family.

Purchasing Power of Peso

shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Note: The dataset used in the special release is exclusive for BARMM region and Lanao del Sur province.

MOHAMMADALI R. ALONTO, MPA
OIC Chief Statistical Specialist