The inflation rate for all income households in the province of Batanes decelerated further in April 2025 at 3.9 percent from 4.2 percent in March 2025. Compared to the same period last year, the April 2024 inflation rate was lower by 0.7 percentage points, recorded at 3.2 percent (refer to Table A and Figure 1). At the regional level, inflation in Cagayan Valley also experienced deceleration from 2.9 percent in March 2025 to 2.0 percent in March 2025. Nationally, the inflation rate followed a similar trend, dropping to 1.4 percent in April 2025 from 1.8 percent the previous month (see Table A).

For the bottom 30 percent income households, or the household whose per capita income falls below the bottom 30 percent of the cumulative per capita distribution, inflation decelerated to 3.0 percent in April 2025. Meanwhile, the regional and national year-on-year change in price index for the low-income group decelerated from its previous month’s annual rates at 1.5 percent and 0.1 percent, respectively (Table A). Figure 1 shows that the inflation for the bottom 30 percent income household in the province is generally higher than the inflation for all income household in 2024, but in 2025, this is the third time that all income households recorded a higher inflation rate. This means that the commonly purchased goods and services of all income group moved at a faster rate than the commodities in the market basket for all income households. 

The major driver of downward trend in the province’s inflation for all income households was the lower year-on-year change in the index of food and non-alcoholic beverages which dropped to 4.7 percent in April 2025 from 6.6 percent in March 2025. This was followed by the decrease in the growth of restaurants and accommodation services which decelerated from 12.7 percent to 7.9 percent, and furnishings, household equipment and routine household maintenance which decreased from 4.0 percent in the previous month to 3.5 percent during the reference period. Other commodities which contributed to the downtrend of this month’s inflation are:

a.    Personal care, and miscellaneous goods and services, 4.5 percent; and
b.    Alcoholic beverages and tobacco, 9.2 percent.
 

In contrast, clothing and footwear (1.5%); housing, water, electricity, gas and other fuels (1.9%); transport (7.3%); and recreation, sport and culture (7.2%) exhibited a faster growth on the year-on-year change in their indices during the reference period. In addition, health maintained its previous month’s inflation at 0.9 percent. Meanwhile, education services, information and communication, and financial services posted a zero percent annual rate. (Table B)

For the bottom 30 percent income households, the deceleration of inflation was due to the decreased in food and non-alcoholic beverages (1.1%); restaurants and accommodation services (7.9%); furnishings, household equipment and routine household maintenance (5.8%); recreation, sport and culture (0.7%); and alcoholic beverages and tobacco (11.0%). (Table B)
 

Inflation for food for all income households decelerated to 5.0 percent during the reference month from 6.9 percent in the previous month. Meanwhile, food inflation for the low-income group decelerated in April 2025 to 1.1 percent from 4.7 percent in March 2025. (Table C)

The main drivers of the lower inflation for food for all income households are the decreased in the annual growth of indices in the food groups: cereals and cereal products (-0.6%); vegetables, tubers, plantains, cooking bananas and pulses (12.3%); and fish and other seafood (1.2%).

For the bottom 30 percent income households, the main drivers were the lower inflation of cereals and cereal products (-7.5%); fish and other seafood (-5.6%); and vegetables, tubers, plantains, cooking bananas and pulses (13.0%).
 

Note: 
CPIs and inflation rates by province and selected city are posted at the PSA website (https://www.psa.gov.ph/). 
 


RAMIL G. ABAD 
Chief Statistical Specialist 
PSA-Batanes