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.

A.    The Philippines

The Philippines’ headline inflation or overall inflation in January 2025 remained at 2.9 percent, the same annual growth rate recorded in December 2024. Inflation in January 2024 was posted at 2.8 percent. (Table A)

By Region

In January 2025, eight regions recorded higher inflation rates, while seven regions recorded lower inflation during the month. On the other hand, two regions retained its previous month’s rate. Region XII (SOCCSKSARGEN recorded the lowest inflation rates at 1.1 percent while Region II (Cagayan Valley) recorded the highest inflation at 5.1 percent during the month. (Figure 1)
 

B. Central Visayas

1.    Regional Inflation

The headline inflation in Central Visayas decelerated to 2.5 percent in January 2025 from 2.9 percent in December 2024. Inflation in January 2024 was posted at 2.5 percent. (Table A, B, and Figure 1)

1.1 Main Drivers to the Downward Trend of the Regional Inflation

The downtrend in the regional inflation in January 2025 was primarily brought about by the slower annual increment of housing, water, electricity, gas and other fuels at 2.6 percent in January 2025 from 3.9 percent in December 2024. Also contributing to the downtrend was the index of transport with a slower annual increment of 3.2 percent during the month from 5.6 percent in December 2024.

Slower annual increments were also noted in the indices of the following commodity groups during the month:

a.    Clothing and Footwear, 0.6 percent from 0.7 percent;  
b.    Furnishings, household equipment and routine household maintenance, 4.3 percent from 4.4 percent;  
c.    Health, 1.7 percent from 2.2 percent;
d.    Recreation, Sport and Culture, 0.9 percent from 1.1 percent; 
e.    Education Services, 6.1 percent from 7.1 percent; and 
f.    Restaurants and accommodation services, 0.3 percent from 0.5 percent.

A faster annual rate during the month was recorded in the index of Food and Non-alcoholic beverages at 2.9 percent from 2.3 percent in the previous month.  

The inflation of financial services moved to 0.0 percent in January 2025 from an annual decline of 0.2 percent in December 2024.

Meanwhile, the following commodity groups retained their previous month's rate. (Table 3)
a.    Alcoholic Beverages and Tobacco at 2.1 percent;  
b.    Information and Communication at 0.6 percent; and
c.    Personal Care, and Miscellaneous Goods and Services at 2.1 percent.

1.2 Main Contributors to the Regional Inflation

The top three commodity groups contributing to the 2.5 percent regional inflation 
in January 2025 were the following:

a.    Food and Non-Alcoholic Beverages with 43.9 percent share or 1.1 percentage points; 
b.    Housing, Water, Electricity, Gas and Other Fuels with 24.3 percent share or 0.6 percentage point; and
c.    Transport with 11.9 percent share or 0.3 percentage point.

2. Food Inflation

Food inflation at the regional level rose to 3.0 percent in January 2025 from 2.4 percent in the previous month. In January 2024, food inflation was lower at 2.1 percent. (Table 7)

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in January 2025 was primarily brought about by the faster year-on-year increase of fish and other seafood at 5.6 percent in January 2025 from 0.2 percent in the previous month. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with a faster year-on-year increase of 6.1 percent during the month from 0.1 percent in December 2024. In addition, the index of meat and other parts of slaughtered land animals also contributed to the uptrend as it recorded a faster year-on-year increase of 6.1 percent during the month from 4.1 percent in December 2024. 

Moreover, a faster annual growth rate was also noted in the index of ready-made food and other food products not elsewhere classified which was recorded at 3.3 percent in January 2025 from 2.5 percent in December 2024.

On the contrary, lower inflation rates during the month were noted in the following food groups: (Table 5)
a.    Flour, bread and other bakery products, pasta products, and other cereals, 0.7 percent from 1.4 percent; and 
b.    Fruits and nuts, 4.7 percent from 7.5 percent.

In addition, year-on-year declines during the month were noted in the indices of the following food groups:
a.    Rice at 2.9 percent from 0.7 percent;  
b.    Milk, other dairy products and eggs at -1.0 percent from 1.5 percent; and
c.    Oils and fats at -0.3 percent from 0.0 percent.

Meanwhile, the index of corn retained its previous month’s rate at 14.8 percent while the index of sugar, confectionery and desserts remained at -4.1 percent.

2.2 Main Contributors to the Food Inflation

Food shared 42.0 percent or 1.1 percentage points to the overall inflation in January 2025. The top three food groups in terms of contribution to the food inflation during the month were the following:

a.    Meat and other parts of slaughtered land animals with 34.1 percent share or 1.02 percentage point; 
b.    Fish and other seafood with 33.7 percent share or 1.01 percentage point; and
c.    Vegetables, tubers, plantains, cooking bananas and pulses with 14.3 percent share or 0.4 percentage point.

C. By Province

Among the provinces and Highly Urbanized Cities (HUCs) of Central Visayas, two HUCs recorded faster year-on-year growth rates this month compared to the previous month’s inflation rates while two provinces and one HUC recorded slower year-on-year growth rates this month compared to the previous month’s inflation rates. On the other hand, two provinces retained their previous month’s inflation rates.

TECHNICAL NOTES

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,

Inflation Rate=(CPI2  – CPI1)/CPI1 *100
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, 
PPP=  1/CPI*100

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

Approved by:

(SGD.)
ARIEL E. FLORENDO
Regional Director