The inflation rate for all income households in the province of Batanes decelerated further in July 2025 at 1.9 percent from 2.4 percent in June 2025. Compared to the same period last year, the July 2024 inflation rate was higher by 0.6 percentage points, recorded at 2.5 percent (refer to Table A and Figure 1). At the regional level, inflation in Cagayan Valley also experienced deceleration from 1.4 percent in June 2025 to 0.2 percent in July 2025. Nationally, the inflation rate decelerated to 0.9 percent in July 2025 from 1.4 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 further to 1.6 percent in July 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 -1.1 percent and -0.8 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 sixth time that the bottom 30 percent households recorded a lower inflation rate. This means that the commonly purchased goods and services of low-income group moved at a slower 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 transport which dropped to -8.6 percent in July 2025 from -3.0 percent in June 2025. This was followed by the decrease in the growth of alcoholic beverages and tobacco which decelerated from 9.7 percent to 8.8 percent, followed by recreation, sport and culture which decreased from 7.4 percent to 5.6 percent, and clothing and footwear which decelerated from 0.6 percent in the previous month to 0.5 percent during the reference period.

In contrast, food and non-alcoholic beverages (4.4%); furnishings, household equipment and routine household maintenance (2.8%), health (0.8%), and information and communication (0.4%) exhibited a faster growth on the year-on-year change in their indices during the reference period. In addition, housing, water, electricity, gas and other fuels, restaurants and accommodation services, and personal care, and miscellaneous goods and services maintained its previous month’s inflation at 0.9 percent, 7.4 percent and 4.6 percent, respectively. Meanwhile, education services, 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 transport (-3.8%); alcoholic beverages and tobacco (10.2%); housing, water, electricity, gas and other fuels (1.2%); clothing and footwear (0.9%). (Table B)

Inflation for food for all income households accelerated to 4.6 percent during the reference month from 4.4 percent in the previous month. Meanwhile, food inflation for the low-income group also experience acceleration in July 2025 with 1.7 percent from 1.4 percent in June 2025. (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 (9.8%); fish and other seafood (6.0%); oils and fats (3.8%); and fruits and nuts (10.0%).

For the bottom 30 percent income households, the main drivers were the higher inflation of vegetables, tubers, plantains, cooking bananas and pulses (11.9%); fruits and nuts (15.7%); and fish and other seafood (5.2%).
 

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