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 3.7 percent in February 2025 to 1.9 percent in March this year, which is comparable to national and regional (Cagayan Valley Region) figures. In addition, a provincial inflation rate of 2.2 percent was projected for March 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 food and non-alcoholic beverages with 4.4 percent in March 2025 from 6.3 percent in February 2025 with 45.4 percent share to the downtrend inflation of the province. The inflation for  rice was the main factor for the downtrend in food and non-alcoholic beverages with –6.3 percent in March 2025 from –0.3 percent in February 2025. Housing, water, electricity, gas and other fuels indices went down, going from –1.8 percent in February 2025 to –5.0 percent in March 2025. Indices of electricty was the key driver for the downtrend in housing, water, electricity, gas and other fuels with –31.3 percent in March 2025 from –16.1 percent in February 2025. Indices for restaurants and accommodation service commodities also went down from 8.4 percent in February 2025 to 4.0 percent in March 2025. Restaurants, café and the like is the main factor for the decrease in inflation for restaurant and accommodation commodities with 4.1 percent in March 2025 from 8.5 percent in February 2025.

   Furthermore, lower inflation rates in the indices of the following commodity groups was observed.

a. Furnishings, household equipment and routine household maintenance, 0.9 percent;

b. Transport, -1.2 percent; and,

c. Recreation, sport and culture, 4.7 percent.

  However, annual growth rates in the indices of the following commodity groups increase from February to March 2025.

a. Alcoholic beverages and tobacco, 5.2 percent; and,

b. Health, 1.7 percent.

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

C. Main Contributors

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

a. Food and non-alcoholic beverages, 4.4 percent;

b. Restaurants and accommodation services, 4.0 percent; and,

c. Alcoholic beverages and tobacco, 5.2 percent.

D. Food Inflation

  In March 2025, food inflation in the province decreased from  6.6 percent in February 2025 to 4.5 percent. In February 2024, the rate of food inflation is 6.5 percent.

  Between February and March 2025, the decrease in food commodity inflation was significantly influenced by the downtrend in the indices of the following food commodities.

  The ratio of cereals and cereal products especially rice went down from –0.3 percent to –6.3 percent. Meat and other parts of slaughtered land animals especially meat of pig saw a decrease in percentage this month, going from 22.5 percent to 16.1 percent. 

  Furthermore, other food commodities saw decrease between February and March 2025.

a. Fruits and nuts, 6.9 percent; and,

b. Vegetables, tubers, plantains, cooking bananas and pulses, 18.9 percent.

  On the other hand, upward inflation rates for the following food commodities were observed:

a. Fish and other seafood, 6.3 percent;

b. Milk, other dairy products and eggs, 1.7 percent;

c. Oils and fats, 10.0 percent;

d. Sugar, confectionery and desserts, -0.9 percent; and

e. Ready-made food and other food products, 5.7 percent.

JULIUS M. EMPERADOR
Chief Statistical Specialist