The inflation rate for the bottom 30% income households in the province was recorded at -3.8 percent in June 2025 from -5.3 percent in the previous month. In June 2024, the inflation rate was posted at 5.5 percent. (as shown in Tables A and B, and Figure 1)

The uptrend in the overall inflation for the bottom 30% income households in June 2025 was primarily brought about by the slower annual decrease in the index of the heavily weighted food and non-alcoholic beverages at - 5.4 percent during the month from a -8.3 percent annual decrease in the previous month. Transport also contributed, with a decline of -7.7 percent in June 2025 from a -8.2 percent annual drop in the previous month.

In addition, faster annual increases were noted in the indices of restaurants and accommodation services at 1.6 percent from 1.1 percent, and personal care, and miscellaneous goods and services at 2.8 percent in June 2025 from 2.6 percent annual decrement in the previous month.

In contrast, lower annual growth rates were recorded in the indices of the following commodity groups in June 2025:

1. Housing, water, electricity, gas and other fuels, -2.3 percent from 0.7 percent;

2. Information and communication, -0.5 percent from 1.1 percent;

3. Recreation, sport and culture, 1.4 percent from 1.8 percent;

4. Clothing and footwear, 2.5 percent from 2.7 percent;

5. Furnishings, household equipment and routine household maintenance, 1.6 percent from 1.7 percent;

6. Health, 1.4 percent from 1.5 percent;

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (as shown in Table C)

Food inflation for the bottom 30% income households at the provincial level moved at a higher pace of -5.9 percent in June 2025 from -8.9 percent in the previous month. In June 2024, its annual increase was observed at 9.4 percent. (as shown in Table D).

The acceleration of food inflation was mainly due to the annual increase in the indices of fish and other seafood at -4.0 percent from -16.8 percent, fruits and nuts at 22.7 percent during the month from 7.1 percent, and milk, other dairy products and eggs at 11.7 percent from 5.2 in the previous month.

Moreover, higher inflation rates during the month were noted in the following food groups:

1. Vegetables, tubers, plantains, cooking bananas and pulses, 2.7 percent from 0.0 percent;

2. Sugar, confectionery and desserts, 5.9 percent from 4.0 percent;

3. Meat and other parts of slaughtered land animals, 6.4 percent from 5.9 percent;

4. Flour, bread and other bakery products, pasta products, and other cereals, 1.0 percent from 0.5 percent;

On the contrary, faster annual decline were noted in the following food groups:

1. Corn, -26.1 percent from -23.7 percent;

2. Ready-made food and other food products n.e.c, 1.5 percent from 3.2 percent.

3. Cereals, -18.6 percent from -17.3 percent;

4. Cereals and cereal products, -16.2 percent from -15.1 percent;

5. Rice, -16.2 percent from -15.3 percent;

TECHNICAL NOTES

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: 

1. Base Year/Period - A period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.

2. 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. 

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

4. 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) weights. 

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

Note: CPIs and inflation rates by province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/). 

Approved for release:

 EMILY P. TOMOGDAN 

Chief Statistical Specialist