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 increased from 4.0 percent in December 2024 to 5.3 percent in January this year, which is comparable to national and regional (Cagayan Valley Region) figures. In addition, a provincial inflation rate of –0.5 percent was projected for January 2024.

B. Source of Trend    
        
The increase 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 increase in inflation was the index of food and non-alcoholic beverages with 7.9 percent in January 2025 from 6.2 percent in December 2024 with 57.5 percent share to the uptrend inflation of the province. Housing, water, electricity, gas and other fuels indices went up, going from –0.1 percent in December 2024 to 2.4 percent in January 2025. 

Furthermore, higher inflation rates in the indices of the following commodity groups were observed:
a. Transport, 2.5 percent;
b. Clothing and footwear, 1.2 percent; and,
c. Recreation, sport and culture, 4.3 percent.

However, annual growth rates in the indices of the following commodity groups decrease from December 2024 to January 2025.
a. Alcoholic beverages and tobacco, 4.2 percent;
b. Health, 1.4 percent; and,
c. Personal care, and miscellaneous goods and services, 1.1 percent.

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

C. Main Contributors

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

a. Food and non-alcoholic beverages, 7.9 percent; and,
b. Restaurants and accommodation services, 6.7 percent.

D. Food Inflation
        
In January 2025, food inflation in the province increased from  6.5 percent in December 2024 to 8.3 percent. In January 2024, the rate of food inflation is 1.5 percent.
 

The increase in food commodity inflation was significantly influenced by the rise in the indices of the following food commodities. 

Note:  CPIs and inflation rates by province and selected city are posted at the PSA website (https://www.psa.gov.ph/)
 

JULIUS M. EMPERADOR
Chief Statistical Specialist