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 2.4 percent from 2.5 percent. The country’s inflation rate in January 2024 was lower at 3.6 percent. (Table A)
B. Central Visayas
Central Visayas’ inflation rate has decreased to 1.9 percent in January 2025 from 2.5 percent in December 2024. In January 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 increased to 0.6 percent from 0.5 percent in December 2024. The inflation rate in January 2024 was observed at 3.5 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 January 2025 was primarily brought about by Food and Non-Alcoholic Beverages at 1.0 percent from 0.8 percent. This was followed by Alcoholic Beverages and Tobacco at 2.8 percent from 2.1 percent. Health ranked third at 2.7 percent from 2.8 percent.
Moreover, higher inflation rates were observed in the following commodity groups during the month:
a. Housing, Water, Electricity, Gas and Other Fuels, 0.2 percent from 0.1 percent; and
b. Financial Services, 0.0 percent from -11.1 percent.
Meanwhile, the following commodity groups have retained their previous month's inflation rates:
a. Clothing and Footwear at 0.1 percent;
b. Furnishings, Household Equipment and Routine Household Maintenance at 0.4 percent;
c. Information and Communication at 0.0 percent;
d. Recreation, Sport and Culture at 0.0 percent;
e. Education Services at 12.9 percent;
f. Restaurants and Accommodation Services at 0.0 percent; and
g. Personal Care, and Miscellaneous Goods and Services at 0.2 percent.
Among all the commodity groups, only Transport posted a lower inflation at -0.6 percent from 0.2 percent.
1.2 Main Contributors to the Provincial Inflation Rate
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 78.3 percent share or 0.47 percentage point;
b. Alcoholic Beverages and Tobacco, at 8.6 percent share or 0.05 percentage point; and
c. Health at 6.7 percent share or 0.04 percentage point.
2. Food Inflation
Food inflation at the provincial level has increased to 1.0 percent in January 2025 from 0.8 percent in December 2024. In January 2024, food inflation was higher at 4.2 percent. (Tables 6 and 7)
2.1 Main Drivers to the Food Inflation
The main driver to the inflation of Food was brought about by Fish and other seafood (ND) at 6.0 percent from 4.1 percent. This was followed by Meat and other parts of slaughtered land animals (ND) at 9.4 percent from 0.4 percent. Vegetables, tubers, plantains, cooking bananas and pulses (ND) at 8.0 percent from 4.8 percent.
Lower inflation rates during the month were also observed in the indices of the following food items: (Table 5)
a. Rice at -5.4 percent from -4.0 percent;
b. Corn at -0.2 percent from 5.1 percent;
c. Flour, bread and other bakery products at 0.1 percent from 0.2 percent;
d. Fruits and Nuts (ND) at -8.2 percent from -6.4 percent; and
e. Sugar, confectionery and desserts (ND) at -5.0 percent from -4.4 percent.
Meanwhile, the following commodity groups have retained their previous month's inflation rates:
a. Milk, other dairy products and eggs (ND) at -0.3 percent;
b. Oils and Fats (ND) at 0.0 percent; and
c. Ready-made food and other food products n.e.c (ND) at 0.1 percent.
2.2 Main Contributors to the Food Inflation
In terms of contribution to the January 2025 provincial inflation rate, food shared 76.2 percent or 0.46 percentage point. Of the food groups, the top contributors to inflation were the following:
a. Fish and other seafood (ND), with 190.6 percent share or 1.91 percentage points;
b. Meat and other parts of slaughtered land animals (ND), with 134.9 percent share or 1.35 percentage points; and
c. Vegetables, tubers, plantains, cooking bananas and pulses (ND) with 117.4 percent share or 1.17 percentage points.
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
