Inflation is the yearly increase in the average price of goods and services within an economy. As prices rise, each unit of currency can purchase fewer goods and services. The Commodity Price Index (CPI) is used to calculate inflation rates and track prices annually. "Year-over-year change" is another commonly used expression, often used to show how much prices varied between two specific periods.

A. Isabela Inflation 

   
    Isabela's inflation decreased from 5.3 percent in January 2025 to 3.7 percent in February this year, which is comparable to national and regional (Cagayan Valley Region) figures. In addition, a provincial inflation rate of 0.9 percent was projected for February 2024.

B. Source of Trend    

     The decrease in the indices of the following commodities was the key driver for the province of Isabela's overall inflation trend. The main factor contributing to the downtrend in inflation was the index of housing, water, electricity, gas and other fuels with –1.8 percent in February 2025 from 2.4 percent in January 2025 with 44.9 percent share to the downtrend inflation of the province. The inflation for  electricity was the main factor for the downtrend in housing, water,  electricity, gas and other fuels with –16.2 percent in February 2025 from 6.8 percent in January 2025.

    Food and non-alcoholic beverage indices went down, going from 7.9 percent in January 2025 to 6.3 percent in February 2025. Indices of vegetables, tubers, plantains, cooking bananas and pulses was the key driver for the downtrend in food and non-alcoholic beverages with 21.4 percent in February 2025 from 44.4 percent in January 2025. Indices for transport commodities also went down from 2.5 percent in January 2025 to –0.7 percent in February 2024. Gasoline is the main factor for the decrease in inflation for transport commodities with –6.1 percent in February 2025 from –1.2 percent in January 2025.
 

    Furthermore, lower inflation rates in the indices of furnishing, household equipment and routine household maintenance went down from 1.2 percent in January 2025 to 1.0 percent in February 2025.
    
    However, annual growth rates in the indices of the following commodity groups increase from January 2025 to February 2025.

• Alcoholic beverages and tobacco, 4.5 percent;

• Clothing and footwear, 1.5 percent;

• Health, 1.5 percent;

• Recreation, sport and culture, 4.8 percent;

• Restaurants and accommodation, 8.4 percent; and,

• Personal care, and miscellaneous goods and services, 1.5 percent.

    The indices of the remaining commodity groups retained their previous month’s annual growth rates.

C. Main Contributors

     The top contributors for the February 2025 overall inflation rate were the following:

• Food and non-alcoholic beverages, 6.3 percent; and,

• Restaurants and accommodation services, 8.4 percent.

D. Food Inflation
        
    In February 2025, food inflation in the province decreased from  8.3 percent in January 2025 to 6.6 percent. In February 2024, the rate of food inflation is 4.2 percent.
    
    Between January and February 2025, the decrease in food commodity inflation was significantly influenced by the downtrend in the indices of the following food commodities.
    

    The ratio of Vegetables, tubers, plantains, cooking bananas and pulses went down from 44.4 percent to 21.4 percent. Cereals and cereal products, particularly rice saw a decrease in percentage this month, going from 3.1 percent to 0.3 percent. Ready made food and other food products declined from 7.2 percent to 4.9 percent.

    However, upward inflation rates for the following food commodities were observed:
 

• Meat and other parts of slaughtered land animals, 13.2 percent;

• Fish and other seafood, 4.1 percent;

• Milk, other dairy products and eggs, 0.4 percent;

• Oils and fats, 9.8 percent;

• Fruits and nuts, 11.0 percent; and,

• Sugar, confectionery and desserts, -3.1 percent.

  

   

  
  JULIUS M. EMPERADOR
  Chief Statistical Specialist