The inflation rate for the bottom 30% income households in the province slowed down to -3.2 percent in February 2025 from -0.7 percent in January 2025. In February 2024, the inflation rate was posted at 8.6 percent. (Tables A and B, and Figure 1)

The downtrend in the overall inflation for the bottom 30% income households in February 2025 was primarily influenced by the lower year on-year growth in the heavily weighted food and non-alcoholic beverages at -4.5 percent during the month from 0.3 percent in the previous month. Likewise, the annual decline in the transport index, which stood at -3.7 percent during the month from -2.9 percent in January 2025, also contributed to the overall inflation downtrend.

Moreover, lower annual rates were noted in the indices of the following commodity groups during the month: 

a. Clothing and footwear, 2.5 percent from 3.9 percent; 

b. Recreation, sport and culture, 2.9 percent from 4.5 percent; and 

c. Furnishings, household equipment and routine household maintenance, 2.6 percent from 2.7 percent.

 In contrast, higher annual growth rates were noted in the indices of the following commodity groups during the month: 

a. Housing, water, electricity, gas, and other fuels, -4.6 percent from -9.0 percent; 

b. Restaurants and accommodation services, 1.1 percent from 0.6 percent; and 

c. Personal care, and miscellaneous goods and services, 2.4 percent from 2.3 percent.

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

Food inflation for the bottom 30% income households at the provincial level moved at a slower pace of -4.9 percent in February 2025 from 0.2 percent in the previous month. In February 2024, its annual increase was observed at 11.5 percent. (Table D). 

The deceleration of food inflation was mainly due to the annual decline in the vegetables, tubers, plantains, cooking bananas and pulses index at -10.8 percent during the month from a 24.0 percent annual increase in January 2025. 

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

a. Rice, -5.2 percent from -3.5 percent; 

b. Corn, -20.8 percent from -20.5 percent; 

c. Flour, bread and other bakery products, pasta products, and other cereals, 1.0 percent from 2.1 percent; 

d. Fish and other seafood, -8.1 percent from 2.7 percent; 

e. Milk, other dairy products and eggs, 2.3 percent from 2.4 percent; 

f. Oils and fats, 5.4 percent from 6.9 percent; and 

g. Ready-made food and other food products n.e.c., 3.1 percent from 3.9 percent.

In contrast, higher annual increases were noted in the following food groups: 

a. Meat and other parts of slaughtered land animals, 5.1 percent from 3.3 percent; 

b. Fruits and nuts, -0.2 percent from -1.4 percent; and

 c. Sugar, confectionery and desserts, 7.7 percent from -1.8 percent. Table D)

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: 

a. 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. 

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) weights. 

e. 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