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 slowed down further to 1.2 percent in April 2025 from 1.9 percent in the previous month, which is comparable to national and regional (Cagayan Valley Region) figures. In April 2024, the provincial inflation rate was higher at 2.8 percent.

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 2.5 percent in April 2025 from 4.4 percent in March 2025 with 81.1 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 –12.1 percent in April 2025 from –6.3 percent in March 2025. Transport indices went down, going from –1.2 percent in March 2025 to –3.2 percent               in April 2025. Indices of gasoline was the key driver for the downtrend in transport commodities with –13.1 percent in April 2025 from –7.8 percent in March 2025. 

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

a.  Alcoholic beverages and tobacco, 5.0 percent;

b. Furnishings, household equipment and routine household maintenance, 0.5 percent;

c. Information and communication, 0.0 percent; and,

d. Personal care and miscellaneous goods and services,  1.2 percent.

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

a. Housing, water, electricity, gas and other fuels, -2.9 percent; and

b. Health, 1.8 percent.

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

C. Main Contributors

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

a. Food and non-alcoholic beverages, 2.5 percent;

b. Alcoholic beverages and tobacco, 5.0 percent; and

c. Restaurants and accommodation services, 4.0 percent.

D. Food Inflation

         Between March and April 2025, food inflation in the province decreased from 4.5 percent to 2.4 percent. In April 2024, the rate of food inflation is 6.9 percent.

      In 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 –4.6 percent to –9.3 percent. Vegetables, tubers, plantains, cooking bananas and pulses saw a decrease in percentage this month, going from 18.9 percent to 9.3 percent. Indices for sugar, confectionery and desserts decreased from –0.9 percent to –1.4 percent.

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

a. Meat and other parts of slaughtered land animals, 11.3 percent;

b. Fish and other seafood, 6.4 percent;

c. Milk, other dairy products and eggs, 4.1 percent;

d. Oils and fats, 11.8 percent; and

e. Fruits and nuts, 7.0 percent.

         Indices for Ready-made food and other food products retained their previous month inflation rate.

Chief Statistical Specialist