Starting February 2022, the Philippine Statistics Authority (PSA) released the rebased Consumer Price Index (CPI) for the Bottom 30% 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 Bottom 30% income households for January 2023 onwards will be 2018-based.
A. Philippines
The country’s inflation rate has decreased to 1.5 percent from 2.4 percent in the previous month. The country’s inflation rate in February 2024 was higher at 4.2 percent. (Table A)
B. Central Visayas
Central Visayas’ inflation rate has decreased to 1.7 percent in February 2025 from 1.9 percent in January 2025. In February 2024, the inflation rate was higher at 2.8 percent. (Table A)
C. Province of Negros Oriental
1. Headline Inflation
The overall inflation in Negros Oriental has decreased to 0.1 percent from 0.6 percent in January 2025. The inflation rate in February 2024 was observed at 3.1 percent.
(Figure 1)
The province’s inflation rate was lower than the region’s inflation rate. (Table 1)
1.1 Main Drivers to the Headline Inflation
The overall inflation in February 2025 was primarily brought about by Food and Non-Alcoholic Beverages at 0.2 percent from 1.0 percent. This was followed by Transport at -1.7 percent from -0.6 percent. Housing, Water, Electricity, Gas and Other Fuels ranked third at -0.2 percent from 0.2 percent.
Moreover, lower inflation rates were also observed in the following commodity groups during the month:
a. Furnishings, Household Equipment and Routine Household Maintenance, 0.0 percent from 0.4 percent; and
b. Health, 0.1 percent from 2.7 percent.
Meanwhile, the following commodity groups have retained their previous month's inflation rates:
a. Clothing and Footwear at 0.1 percent;
b. Information and Communication at 0.0 percent;
c. Recreation, Sport and Culture at 0.0 percent;
d. Education Services at 12.9 percent;
e. Restaurants and Accommodation Services at 0.0 percent;
f. Financial Services at 0.0 percent; and
g. Personal Care, and Miscellaneous Goods and Services at 0.2 percent.
Among all the commodity groups, only Alcoholic Beverages and Tobacco posted higher inflation at 2.9 percent from 2.8 percent.
1.2 Main Contributors to the Headline Inflation
The top 3 commodity groups contributing to the January 2025 provincial inflation rate of 0.6 percent were the following:
a. Food and Non-Alcoholic Beverages at 202.3 percent share or 0.20 percentage point;
b. Alcoholic Beverages and Tobacco at 114.6 percent share or 0.11 percentage point; and
c. Education Services at 58.6 percent share or 0.06 percentage point.
2. Food Inflation
Food inflation at the provincial level has decreased to 0.2 percent in February 2025 from 1.0 percent in January 2025. In February 2024, food inflation was observed at
4.0 percent. (Tables 6 and 7)
2.1 Main Drivers to the Food Inflation
The main driver to the inflation of Food in February 2025 was brought about by Rice at -8.1 percent from -5.4 percent. This was followed by Meat and other parts of slaughtered land animals (ND) at 5.8 percent from 9.4 percent. Fish and other seafood (ND) ranked third at 5.0 percent from 6.0 percent in the previous month.
Moreover, lower inflation rates during the month were also observed in the indices of the following food groups: (Table 5)
a. Corn at -1.1 percent from -0.2 percent;
b. Vegetables, tubers, plantains, cooking bananas and pulses (ND) at 7.8 percent from 8.0 percent; and
c. Ready-made food and other food products n.e.c. (ND) at 0.0 percent from 0.1 percent.
On the contrary, three food groups posted higher inflation rates during the month compared to their previous month’s inflation rates, and these were as follows:
a. Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals at 0.2 percent from 0.1 percent;
b. Fruits and Nuts (ND) at -3.7 percent from -8.2 percent; and
c. Sugar, confectionery and desserts (ND) at 5.1 percent from -5.0 percent.
Two food groups have retained their previous month’s inflation rates and these were as follows:
a. Milk, other dairy products and eggs (ND) at -0.3 percent; and
b. Oils and Fats (ND) at 0.0 percent.
2.2 Main Contributors to the Food Inflation
In terms of contribution to the February 2025 provincial inflation rate, food shared 193.3 percent or 0.19 percentage point. Of the food groups, the top contributors to inflation were the following:
a. Corn, with 72.3 percent share or 0.14 percentage point;
b. Fruits and Nuts (ND), with 43.8 percent share or 0.09 percentage point; and
c. Milk, other dairy products and eggs (ND), with 6.1 percent share or 0.01 percentage point.
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,
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.
Prepared by:
(SGD.)
ELMER T. BARING
Statistical Analyst
Approved by:
(SGD.)
ARIEL T. FORTUITO
Chief Statistical Specialist
