

1. Headline Inflation
La Union’s headline inflation or overall inflation accelerated to 3.0 percent in February 2025 from 2.0 percent in January 2025. This was the highest recorded inflation in the province since July 2024. This also brings the provincial average inflation from January to February 2025 to 2.5 percent. In February 2024, the inflation rate was lower at 2.8 percent. (Table A and Figure1)
1.1 Main Drivers to the Upward Trend of February 2025 Headline Inflation
The uptrend in the overall inflation of the province in February 2025 was primarily influenced by the faster annual increment in the index of food and non-alcoholic beverages at 3.8 percent during the month from 1.2 percent in January 2025. This was followed by recreation, sport and culture with a faster year-on-year markup of 1.9 percent in February 2025 from 1.6 percent in the previous month.
In contrast, slower annual increases were observed in the indices of the following commodity groups during the month:
Alcoholic beverages and tobacco, 1.0 percent from 1.7 percent;
Clothing and footwear, 1.6 percent from 2.2 percent; and
Housing, water, electricity, gas and other fuels, 6.9 percent from 7.2 percent.

Transport also recorded a faster annual decline of 1.4 percent in February 2025 from its annual decline of 0.3 percent in the previous month.
Meanwhile, the following commodity groups retained their respective previous month’s annual rate:
Furnishings, household equipment and routine household maintenance, 0.6 percent;
Health, 1.8 percent;
Information and communication, 0.3 percent;
Education Services, 2.7 percent;
Restaurants and accommodation services, 0.5 percent; and
Personal care, and miscellaneous goods and services, 0.6 percent.
Financial services retained zero growth in February 2025.
The top three commodity groups contributing to the February 2025 overall inflation of the province were the following:
Food and non-alcoholic beverages with 49.0 percent share or 1.5 percentage points;
Housing, water, electricity, gas and other fuels with 43.8 percent share or 1.3 percentage points; and
Restaurants and accommodation services with 2.3 percent share or 0.1 percentage point.
2. Food Inflation
Food inflation at the provincial level also accelerated to 4.2 percent in February 2025 from 1.2 percent in January 2025. In February 2024, food inflation was higher at 7.3 percent.
2.1 Main Drivers to the Upward Trend of the February 2025 Food Inflation
The acceleration of food inflation in the province in February 2025 was primarily contributed by the slower annual decrease of 4.8 percent in the rice index from its annual decline of 10.4 percent in January 2025. This was followed by meat and other parts of slaughtered land animals with a faster annual increase of 11.7 percent in February 2025 from 5.4 percent in January 2025. The third contributor to the uptrend of food inflation in the province in February 2025 was fish and other seafood with a year-on-year mark up of 9.2 percent during the month from 5.0 percent in the previous month.
In addition, faster annual gain was recorded in the index of milk, other dairy products and eggs at 0.1 percent in February 2025 from its annual decline of 2.0 percent in January 2025.
Sugar, confectionery and desserts also recorded a slower annual decline of 0.6 percent in February 2025 from an annual drop of 2.7 percent in the previous month.
On the contrary, slower annual increases during the month were observed in the indices of the following food groups:
Flour, bread and other bakery products, pasta products, and other cereals, 2.6 percent from 3.0 percent;
Fruits and nuts, 4.3 percent from 4.6 percent;
Vegetables, tubers, plantains, cooking bananas and pulses, 13.5 percent from 20.5 percent; and
Ready-made food and other food products not elsewhere classified, 2.3 percent from 2.6 percent.
Oils and fats also recorded a faster annual decrease of 2.6 percent from its year-on-year decline of 1.6 percent.
Meanwhile, corn recorded a zero growth in February 2025 from 6.5 percent inflation in the previous month.
2.2 Main Contributors to the February 2025 Food Inflation
Food inflation contributed 48.8 percent or 1.5 percentage points to the overall inflation in February 2025. The top three food groups in terms of contribution to food inflation during the month were the following:
Meat and other parts of slaughtered land animals, with 63.8 percent share or 2.7 percentage points;
Fish and other seafood, with 33.4 percent share or 1.4 percentage points; and
Vegetables, tubers, plantains, cooking bananas and pulses with 25.7 percent share or 1.1 percentage points.
SGD. DANITES E. TEÑIDO, PhD
Chief Statistical Specialist
/MMAAA