1. Headline Inflation

La Union’s headline inflation or overall inflation decelerated to 1.5 percent in March 2025 from 3.0 percent in February 2025. This was the lowest recorded inflation in the province since September 2024. This also brings the provincial average inflation from January to March 2025 to 2.2 percent.  In March 2024, the inflation rate was higher at 3.7 percent.  (Table A and Figure1)

1.1 Main Drivers to the Downward Trend of March 2025 Headline Inflation

The downtrend in the overall inflation of the province in March 2025 was primarily influenced by the slower annual increment in the index of food and non-alcoholic beverages at 1.3 percent during the month from 3.8 percent in February 2025. This was followed by transport with a faster year-on-year decline of 3.5 percent in March 2025 from an annual decrease of 1.4 percent in the previous month. Housing, water, electricity, gas and other fuels ranked third contributor to the downtrend in March 2025 inflation with slower inflation rate of 6.3 percent from 6.9 percent in February 2025.

In addition, slower annual increases were also noted in the indices of the following commodity groups in March 2025:

1. Health,1.0 percent from 1.8 percent;

2. Clothing and footwear, 1.0 percent from 1.6 percent;

3. Personal care, and miscellaneous goods and services, 0.3 percent

4. from 0.6 percent

5. Recreation, sport and culture, 0.9 percent from 1.9 percent; and

6. Furnishings, household equipment and routine household maintenance,

7. 0.4 percent from 0.6 percent.

In contrast, a faster year-on-year mark up was recorded in the alcoholic beverages and tobacco at 1.6 percent in March 2025 from 1.0 percent in February 2025.

Meanwhile, the following commodity groups retained their respective previous month’s annual rate:

1. Information and communication, 0.3 percent;

2. Education Services, 2.7 percent; and

3. Restaurants and accommodation services, 0.5 percent.

Financial services also retained zero growth in March 2025.

1.2 Main Contributors to the March 2025 Headline Inflation

The top three commodity groups contributing to the March 2025 overall inflation of the province were the following:

1. Housing, water, electricity, gas and other fuels with 72.1 percent share or 1.1 percentage points;

2. Food and non-alcoholic beverages with 33.5 percent share or 0.5 percentage point; and

3. Restaurants and accommodation services with 3.7 percent share or 0.1 percentage point.

2. Food Inflation

Food inflation at the provincial level also slowed down to 1.4 percent in March 2025 from 4.2 percent in February 2025. In March 2024, food inflation was higher at 8.2 percent.

2.1 Main Drivers to the Downward Trend of the March 2025 Food Inflation

The deceleration of food inflation in the province in March 2025 was primarily contributed by the faster annual decrease of 14.8 percent in the rice index from its annual decline of 4.8 percent in February 2025. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with a slower annual increase of 10.6 percent in March 2025 from 13.5 percent in February 2025.  The third contributor to the downtrend of food inflation in the province in March 2025 was the slower inflation rate of meat and other parts of slaughtered land animals at 10.9 percent in march 2025 from 11.7 percent in the previous month.

Moreover, slower annual gain was also recorded in the index of flour, bread and other bakery products, pasta products, and other cereals at 2.1 percent in March 2025 from 2.6 percent in February 2025.

On the contrary, faster annual increases during the month were observed in the indices of the following food groups:

1. Fish and other seafood, 9.8 percent from 9.2 percent;

2. Milk, other dairy products and eggs, 1.9 percent from 0.1 percent;

3. Fruits and nuts, 6.5 percent from 4.3 percent; and

4. Ready-made food and other food products not elsewhere classified, 2.5 percent from 2.3 percent.

Sugar, confectionery and desserts also recorded a faster year-on-year mark up of 0.6 percent in March 2025 from an annual decline of 0.6 percent in the previous month.

Oils and fats recorded zero inflation during the month from an annual decline of 2.6 percent in February 2025. Meanwhile, Corn also remained at zero growth in March 2025.

2.2Main Contributors to the March 2025 Food Inflation

Food inflation contributed 33.3 percent or 0.5 percentage point to the overall inflation in March 2025. The top three food groups in terms of contribution to food inflation during the month were the following:

1. Meat and other parts of slaughtered land animals, with 166.9 percent share or 2.3 percentage points;

2. Fish and other seafood, with 97.2 percent share or 1.4 percentage points; and

3. Vegetables, tubers, plantains, cooking bananas and pulses with 54.7 percent share or 0.8 percentage point.

SGD. DANITES E. TEÑIDO, PhD
Chief Statistical Specialist

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