1. Philippines

   Inflation rate for the bottom 30% income households in the country continued to slow down to 1.5 percent in February 2025 from 2.4 percent in January 2025. In February 2025, the inflation rate was at 4.2 percent. (Table A)

   During the month, the main driver to the downward trend of the overall inflation for this income group was brought by lower year-on-year growth in the heavily-weighted food and non-alcoholic beverages at 0.8 percent from 2.4 percent in January 2024. Moreover, lower annual increases were observed in the housing, water, electricity, gas and other fuels index at 1.7 percent and transport index at 0.2 percent during the month that contributed to the overall inflation.

2. Central Visayas

   Inflation for the bottom 30% income households in Region 07 – Central Visayas eased to 1.7 percent during the month from 1.7 percent in January 2025. In February 2024, the inflation rate in this income group was at 2.8 percent. (Table A)

   During the month, almost all provinces in Central Visayas recorded a decrease of inflation except for the Province of Cebu that posted an increase, at 3.7 percent form 3.5 percent in January 2025. Despite the slowing down of inflation in the region, the Province of Cebu still recorded the highest inflation at 3.7 percent. (Table A)

3. Province of Siquijor

   1. Overall Inflation

      Following the trend of the national and regional level, Province of Siquijor inflation rate for the bottom 30% income households declined to -0.2 percent during the month from the increase in January 2025 at 0.6 percent. In February 2024, the inflation rate posted at 6.1 percent. (Table A & B and Figure 1)

      

       

      

       

      1.1 Main Drivers to the Downward Trend of the Overall Inflation

      The downward trend of the overall inflation for the bottom 30% income households in February 2025 was brought by slower year-on-year growth in the heavily-weighted food and non-alcoholic beverages at 0.2 percent from 1.0 percent in January 2025.

      Likewise, decline in the index of housing, water, electricity, gas and other fuels was noted during the month at -1.5 percent from the increase in January 2025 to 0.1 percent. Faster decline in transport index at -4.1 percent during the month from -3.5 percent in January 2025 also contributed to the downtrend in the overall inflation. (Table 3 & 4)

      Additionally, lower annual rates were observed to the indices of the following commodity groups during the month compared to the previous month:

      1. clothing and footwear, 0.0 percent from 0.7 percent;
      2. personal care, and miscellaneous good and services, 2.3 percent from 2.4 percent;
      3. alcoholic beverages and tobacco,1.7 percent from 1.8 percent; and
      4. furnishings, household equipment and routine household maintenance, 1.4 percent from1.5 percent. (Table 3 & 4)

       

      Meanwhile, the indices of the following commodity groups retained their respective previous month’s annual rates:

      1. health, 2.6 percent;
      2. information and communication, 0.6 percent;
      3. recreation, sport and culture, 2.2 percent;
      4. education services, 0.1 percent;
      5. restaurants and accommodation services, 1.1 percent; and
      6. financial services, 0.0 percent. (Table 3 & 4)

       

      1.2 Main Contributors to the Headline Inflation

      The main contributors to the February 2025 overall inflation for the bottom 30% income households in the province were the following:

      1. health with 495.8 percent share or -0.99 percentage point;
      2. housing, water, electricity, gas and other fuels with 177 percent share or -0.35 percentage point;
      3. clothing and footwear with 0.0 percent share or 0.00 percentage point; and
      4. financial services with 0.0 percent share or 0.00 percentage point.

       

   2. Food Inflation

      Food inflation for the bottom 30% income households at the provincial level moved at a slower rate at 0.2 percent in February 2025 from 1.0 percent in January 2025. In February 2024, food inflation was at 8.1 percent. (Table 9)

      2.1 Main Drivers to the Upward Trend of the Food Inflation

      The deceleration of food inflation in February 2025 was primarily brought by the faster annual decline in the index of cereals and cereal products at -8.6 percent from -4.3 percent in the previous month of which faster annual decline in rice index at -11.4 percent from -5.6 percent in January 2025 and corn index at -7.7 percent from -4.3 percent in January 2025 were noted. (Table 5 & 9)

      Annual decline in the index of fruits and nuts at 13.3 percent during the month from 14.5 percent in January 2025 were noted that influenced the overall food inflation in the province. Likewise, annual decline in the index of sugar, confectionery and desserts at -2.4 percent during the month from -0.8 percent in January 2025 also contributed to the deceleration of food inflation. (Table 5 & 9)

      Additionally, the following commodity groups slowed down during the month compared to January 2025:

      1. milk, other dairy products and eggs index at -0.4 percent from 0.8 percent; and
      2. flour, bread and other bakery products, pasta products, and other cereals, 0.7 percent from 1.2 percent. (Table 5 & 9)

       

      Moreover, annual increment in February 2025 were observed to the following food commodity groups:

      1. meat and other parts of slaughtered land animals, 3.2 percent from 0.5 percent;
      2. fish and other seafood, 11.3 percent from 7.7 percent; and
      3. Vegetables, tubers, plantains, cooking bananas and pulses, 4.1 percent from 1.7 percent. (Table 5 & 9)

       

      Furthermore, indices of oils and fats and ready-made food and other food products retained their previous month’s record at 0.2 percent and 7.6 percent, respectively. (Table 5 & 9)

      2.2 Main Contributors to the Food Inflation

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

      1. cereals and cereal products which includes rice, corn and b. flour, bread and other bakery products, pasta products, and other cereals with 1,150.0 percent share or 2.30 percentage points;
      2. sugar, confectionery and desserts with 17.5 percent share or 0.03 percentage points; and
      3. oils and fats with -0.1 percent share or 0.00 percentage point.

       

Consumer Price Index (CPI)

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.

Bottom 30% Household

Families that belong in the low-income bracket and the most vulnerable to economic and social difficulties. Based on the “relative poverty” concept, a household whose per capita income falls below the bottom 30% of the cumulative per capita distribution belongs to the low-income group.

One of the common characteristics of households in this income group is that expenditures on food items account for a more substantial proportion of expenditures compared to expenditures on other items. Price changes in food, therefore, would be expected to greatly affect this income group more than any other group.

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 monitoring indicator of the government economic policy.
• Measures the composite change in the consumer prices in various commodities overtime.

Computation of CPI

The computation of CPI involves consideration of the following important points:

1. Base Period – The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.
2. Market Basket – A sample of the thousands of varieties of goods purchased for consumption and the 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 (2018) weights.
5. Geographic Coverage – CPI values are computed at the national, regional, and provincial levels, and or selected cities.

Inflation Rate

The inflation rate is the annual rate of change, or the year-on-year change of CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.

Note: Statistical tables in excel file are provided as an attachment of this release.

(SGD) JOSELITO C. MAGHANOY
(Supervising Statistical Specialist)/
Officer-in-Charge