
The inflation rate for all income households in the province of Batanes accelerated further in February 2025 at 4.7 percent from 3.9 percent in January 2025. Inflation in the province in February 2024 is relatively lower by 1.8 percentage points at 2.9 percent (Table A and Figure 1). In the region, inflation in Cagayan Valley decelerated to 3.9 percent in February 2025 from 5.1 percent in January 2025. Nationwide, the inflation decelerated at 2.1 percent during the reference period from 2.9 percent 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 accelerated to 4.5 percent in February 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 3.7 percent and 1.5 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. 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 (4.5%) than all income households (4.7%).

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 transport which increased from 5.1 percent in January 2025 to 9.0 percent in February 2025. This was followed by the increase in the growth of food and non-alcoholic beverages which accelerated from 5.9 percent to 6.4 percent, and restaurants and accommodation services which accelerated from 10.5 percent in the previous month to 15.5 percent during the reference month. Other commodity which contributed to the uptrend of this month’s inflation were:
a. Alcoholic beverages and tobacco, 9.8 percent;
b. Housing, Water, Electricity, Gas and other Fuel, 1.5 percent;
c. Personal Care, Miscellaneous Goods and Services, 4.3 percent; and
d. Recreation, sport, and culture, 5.8 percent.

In contrast, clothing and footwear (1.4%); and information and communication (0.0%) exhibited a slower growth on the year-on-year change in their indices during the reference period. In addition, furnishings, household equipment and routine household maintenance, and health maintained their previous month’s inflation at 2.7 percent, and 1.0 percent, respectively. Meanwhile, education services, and financial services remained at zero percent annual rate. (Table B)
For the bottom 30 percent income households, the acceleration of inflation was due to the increased in transport (20.8%); food and non-alcoholic beverages (4.8%); personal care, and miscellaneous goods and services (1.5%); housing, water, electricity, gas and other fuels (2.0%); alcoholic beverages and tobacco (11.6%); and restaurants and accommodation services (15.5%). (Table B)

Inflation for food for all income households accelerated to 6.7 percent during the reference month from 6.1 percent in the previous month. Food inflation for the low-income group also accelerated in February 2025 to 4.9 percent from 4.5 percent in January 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 (15.0%); meat and other parts of slaughtered land animals (17.2%); and ready-made food and other food products (6.7%).
For the bottom 30 percent households, the main drivers were the higher inflation of vegetables, tubers, plantains, cooking bananas and pulses (15.2%); fruits and nuts (-7.6%); and meat and other parts of slaughtered land animals (17.6%).
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