Central Visayas

Central Visayas’ overall inflation in May 2025 decelerated to 0.9 percent from 2.0 percent in April 2025. In May 2024, inflation rate was recorded at 4.2 percent. (Tables 1 and 2)
 

Main Drivers to the Downward Trend of the Regional Inflation

The downtrend in overall inflation for all income households in May 2025 was primarily brought about by the year-on-year decline of 1.3 percent in the index of food and non-alcoholic beverages, from a 0.9 percent annual increase in the previous month. This was followed by transport with a slower annual increment of 0.4 percent during the month from 3.3 percent in April 2025. Also contributing to the downtrend was the slower annual increment of furnishings, household equipment and routine household maintenance at 5.3 percent during the month from 5.5 percent in April 2025. In addition, a slower annual increase was recorded in the index of personal care, and miscellaneous goods and services at 2.0 percent in May 2025 from a 2.1 percent annual increase in the previous month. The clothing and footwear index also recorded a slower annual growth of 0.6 percent during the month from 0.7 percent in April 2025.

In contrast, higher annual rate was noted in the index of housing, water, electricity, gas and other fuels at 4.0 percent in May 2025 from 3.8 percent in April 2025.

Meanwhile, the following commodity groups retained their previous month's rates:

a.    Alcoholic beverages and tobacco at 2.9 percent;
b.    Health at 1.6 percent;
c.    Information and communication at 0.5 percent;
d.    Recreation, sport and culture at 0.7 percent;
e.    Education services at 5.3 percent; 
f.    Restaurants and accommodation services at 0.0 percent; and
g.    Financial Services at 0.0 percent.

Main Contributors to the Regional Inflation

The top three commodity groups contributing to the 0.9 percent regional inflation 
in May 2025 were the following:

a.    Housing, water, electricity, gas and other fuels with 100.8 percent share  or 0.91 percentage point;
b.    Furnishings, household equipment and routine household maintenance with 19.8 percent share or 0.18 percentage point; and
c.    Education services with 11.3 percent share or 0.10 percentage point.

Food Inflation

Food inflation at the regional level declined by 1.6 percent in May 2025 from 0.8 percent annual increase in the previous month. In May 2024, food inflation was higher at 7.0 percent. (Table 3)

Main Drivers to the Downward Trend of Food Inflation

The decrease in food inflation in May 2025 was primarily brought about by the faster year-on-year decrease of 21.1 percent in the index of corn from an annual decrease of 1.4 percent in the previous month. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with year-on-year decrease of 14.8 percent during the month from 3.7 percent annual increase in April 2025.

In addition, rice also contributed to the downtrend as it recorded a faster annual decrement of 11.3 percent during the month from an annual decrease of 10.2 percent in April 2025.

Slower annual increments were noted during the month in the indices of ready-made food and other food products not elsewhere classified at 1.2 percent, and flour, bread and other bakery products, pasta products, and other cereals at 0.4 percent from their respective year-on-year increases of 1.4 percent and 0.5 percent in April 2025.

On the contrary, faster year-on-year increases were observed during the month in the indices of the following food groups:

a.    Meat and other parts of slaughtered land animals, 7.7 percent from7.4 percent;
b.    Fish and other seafood, 10.4 percent from 6.6 percent;
c.    Milk, other dairy products and eggs, 4.2 percent from 2.9 percent; and
d.    Fruits and nuts, 4.5 percent from 4.0 percent.

Moreover, the index of sugar, confectionery and desserts recorded an annual increase of 0.6 percent in May 2025 from an annual decline of 0.5 percent in April 2025.

Meanwhile, the index of oils and fats retained its previous month’s rate at 0.2 percent.

Main Contributors to the Food Inflation

Food shared -67.4 percent or -0.61 percentage point to the overall regional inflation in May 2025. The top three food groups in terms of contribution to the food inflation during the month were the following:

a.    Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with a share of 269.6 percent or -4.31 percentage points;
b.    Vegetables, tubers, plantains, cooking bananas and pulses with 77.4 percent share or -1.24 percentage points; and
c.    Oils and fats with -0.2 percent share or 0.00 percentage point.

Inflation Rate by Region

In May 2025, ten regions recorded lower inflation during the month, and seven regions recorded higher inflation. One region retained its previous month’s inflation rate. The lowest inflation rate was recorded in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at -1.6 percent while the highest inflation rate was recorded in Cordillera Administrative Region (CAR) at 2.5 percent. (Figure 2)
 

Inflation Rate by Province/HUC

Among the provinces and Highly Urbanized Cities (HUCs) in Central Visayas, Bohol, Cebu, and Cebu City recorded slower year-on-year increases this month compared with the previous month’s inflation rates. On the other hand, the cities of Lapu-Lapu and Mandaue recorded a faster annual increment in May 2025 compared to April 2025. (Figure 3)
 

TECHNICAL NOTES

Starting February 2022, the Philippine Statistics Authority (PSA) released the rebased Consumer Price Index (CPI) for all income households to base year 2018, from base year 2012 as announced in the press release number 2022-01 dated 04 January 2022. The CPI series for all income households for January 2022 onwards will be 2018-based.

The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on a nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency. 

The CPI is 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. 

Retail Price is the price at which a commodity is sold for spot in small quantities for consumption.

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

Market Basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Weight is a value attached to a commodity or ground of commodities to indicate the relative importance of that commodity or group of commodities in the market basket. 

Inflation Rate is equivalent to a decline in the purchasing power of the peso. It is the change in the CPI over a specific period of time (usually a month or a year). That is, 

where: 

CPI₁ - is the CPI in the previous period 

CPI₂ - is the CPI in the current period 

The Purchasing Power of the Peso (PPP) is a measure of the real value of the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100. That is, 

Headline Inflation is the rate of change in the weighted average prices of all goods and services in the CPI basket. 

WILMA A. PERANTE
(Director II)
Officer-in-Charge