Central Visayas

Inflation for the bottom 30% income households in Central Visayas decelerated further to 1.7 percent in February 2025 from 1.9 percent in January 2025. In February 2024, inflation rate was recorded at 2.8 percent. (Tables 1 and 2)

Main Drivers to the Downward Trend of the Regional Inflation

The downtrend in overall inflation for the bottom 30% income households in February 2025 was primarily brought about by the slower annual increment of food and non-alcoholic beverages at 1.8 percent in February 2025 from 2.0 percent in the previous month. This was followed by the index of restaurants and accommodation services which moved to 0.0 percent inflation during the month from an annual increment of 0.5 percent in January 2025. Also contributing to the downtrend was the index of housing, water, electricity, gas and other fuels with a slower annual increment of 0.7 percent during the month from 0.9 percent in January 2025.

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

a.    Alcoholic beverages and tobacco, 2.5 percent from 2.8 percent; 
b.    Furnishings, household equipment and routine household maintenance, 1.1 percent from 1.2 percent; 
c.    Health, 1.0 percent from 1.6 percent;
d.    Recreation, Sport and Culture, 3.2 percent from 3.5 percent; and
e.    Personal Care, and Miscellaneous Goods and Services, 1.9 percent from 2.0 percent.

In contrast, higher annual increment was noted in the index of transport at 7.1 percent inflation in February 2025 from 5.0 percent in January 2025.

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

a.    Clothing and Footwear at 0.7 percent; 
b.    Information and Communication at 0.0 percent;
c.    Education Services at 8.1 percent; and
d.    Financial Services at 0.0 percent.

Main Contributors to the Regional Inflation

The top three commodity groups that contributed to  the February 2025 overall regional inflation for the bottom 30% income households were the following:

a.    Food and Non-Alcoholic Beverages with 51.8 percent share or 0.9 percentage point; 
b.    Transport with 26.0 percent share or 0.4 percentage point; and 
c.    Housing, Water, Electricity, Gas and Other Fuels with 6.7 percent share or 0.1 percentage point.  

Food Inflation

Food inflation for the bottom 30% income households at the regional level moved at a slower pace of 1.7 percent in February 2025 from 2.0 percent in the previous month. In February 2024, it was observed at 1.5 percent (Table 3)

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in February 2025 was primarily brought about by the faster year-on-year decrease of 8.7 percent in the index of rice from an annual decrease of 6.8 percent in the previous month. This was followed by corn with a slower year-on-year increase of 11.2 percent during the month from 14.3 percent in January 2025.

In addition, the index of meat and other parts of slaughtered land animals also contributed to the downtrend as it recorded a slower year-on-year increase  of 5.1 percent during the month from 6.1 percent in January 2025.

In addition, lower annual growth rates were noted in the following food groups:

a.    Flour, bread and other bakery products, pasta products,  and other cereals,  0.5 percent from 0.8 percent; and
b.    Ready-made food and other food products not elsewhere classified, 1.9 percent from 2.6 percent.

On the contrary, higher annual increases were noted in the following food groups:

a.    Fish and other seafood, 6.4 percent from 4.3 percent; 
b.    Fruits and nuts, 5.9 percent from 5.4 percent; and
c.    Vegetables, tubers, plantains, cooking bananas and pulses, 7.2 percent from 4.5 percent.

Further, slower annual decreases during the month were observed in the indices of the following food groups:

a.    Milk, other dairy products and eggs, -1.3 percent from -1.7 percent; and
b.    Sugar, confectionery and desserts, -2.3 percent from -5.5 percent.

Meanwhile, oils and fats retained its previous month's rate at -0.1 percent.

Main Contributors to the Food Inflation

Food inflation contributed 47.3 percent or 0.8 percentage point to the February 2025 overall regional inflation for the bottom 30% income households.

Among the food groups, the main contributors to the food inflation during the month were the following:

a.    Fish and other seafood with 70.6 percent share or 1.20 percentage points; 
b.    Meat and other parts of slaughtered land animals with 36.7 percent share or 0.62 percentage point; and
c.    Vegetables, tubers, plantains, cooking bananas and pulses with 31.9 percent share or 0.54 percentage point.

Inflation Rate by Region

All regions recorded lower inflation rates in February 2025. Region XI (Davao Region) recorded the lowest inflation rate at -1.5 percent while Region II (Cagayan Valley) recorded the highest inflation rate at 3.7 percent during the month. (Figure 2)
 

Inflation Rate by Province/HUC

Among the provinces and Highly Urbanized Cities (HUCs) in Central Visayas, all HUCs and three provinces recorded slower year-on-year growth rates this month compared with the previous month’s rates (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