The inflation rate for all income households in the province of Batanes accelerated further in January 2025 at 3.9 percent from 3.6 percent in December 2024. Inflation in the province in January 2024 is relatively lower by 0.8 percentage points at 3.1 percent (Table A and Figure 1). In the region, inflation in Cagayan Valley accelerated to 5.1 percent in January 2025 from 4.6 percent in December 2024. Nationwide, the inflation remained at 2.9 percent during the reference period, the same as the one recorded in the previous month. (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 at 3.6 percent in January 2025. Meanwhile, the regional year-on-year change in price index for the low-income group accelerated from its previous month’s annual rates at 5.4 percent while decelerated in national level at 2.4 percent (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. This means that the commonly purchased goods and services of the low-income group moved at a faster rate than the commodities in the market basket for all income households. However, during the reference month, inflation for the low-income group recorded a lower rate (3.6%) than all income households (3.9%). 

The major driver of trend in the province’s inflation for all income households was the higher year-on-year change in the index of food and non-alcoholic beverages which increased from 5.4 percent in December 2024 to 5.9 percent in January 2025. Other commodity which contributed to the uptrend of this month’s inflation are:

a.    Housing, Water, Electricity, Gas and other Fuel, 1.3 percent;
b.    Information and Communication, 0.3 percent;
c.    Alcoholic beverages and tobacco, 7.3 percent; and
d.    Personal Care, Miscellaneous Goods and Services, 3.4 percent.
 

In contrast, furnishings, household equipment and routine household maintenance (2.7%); transport (5.1%); recreation, sport and culture (5.5%); and restaurants and accommodation services (10.5%) exhibited a slower growth on the year-on-year change in their indices during the reference period. In addition, clothing and footwear, and health maintained their previous month’s inflation at 1.5 percent, and1.0 percent, respectively. Meanwhile, education services, and financial services remained at zero percent annual rate. (Table B)

For the bottom 30 percent income households, the deceleration of inflation was due to the decreased in transport (13.6%); restaurants and accommodation services (10.6%); clothing and footwear (0.4%), furnishings, household equipment and routine household maintenance; recreation, sport and culture (0.9%); and personal care, and miscellaneous goods and services (-1.0%). (Table B)
 

Inflation for food for all income households accelerated to 6.1 percent during the reference month from 5.6 percent in the previous month. Food inflation for the low-income group also accelerated in January 2025 to 4.5 percent from 4.4 percent in December 2024. (Table C)

The main drivers of the higher inflation for food for all income households are the increased in the annual growth of indices in the food groups: vegetables, tubers, plantains, cooking bananas and pulses (8.7%); fish and other seafood (5.2%); meat and other parts of slaughtered land animals (16.0%); fruits and nuts (0.2%); and oils and fats (1.5%).

For the bottom 30 percent households, the main drivers were the higher inflation of vegetables, tubers, plantains, cooking bananas and pulses (8.9%); fish and other seafood (8.5%); meat and other parts of slaughtered land animals (16.2%); fruits and nuts (-11.2%).
     
 

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