1. Headline Inflation

La Union’s inflation rate for the bottom 30% income households accelerated to 3.5 percent in February 2025 from 2.2 percent in January 2025. This brings the provincial average inflation from January to February 2025 for this income group to 2.9 percent. In February 2024, inflation rate for the bottom 30% income households was higher at 5.3 percent.  (Table A and Figure1)

1.1 Main Drivers to the Upward Trend of February 2025 Overall Inflation

The uptrend in the inflation of the province in February 2025 for the bottom 30% income households was brought about by the faster annual increment in the index of food and non-alcoholic beverages at 3.2 percent during the month from 0.4 percent in January 2025.

In contrast, slower annual increases were observed in the indices of the following commodity groups during the month:

1. Alcoholic beverages and tobacco, 1.2 percent from 2.7 percent;

2. Clothing and footwear, 1.4 percent from 2.3 percent;

3. Housing, water, electricity, gas and other fuels, 10.0 percent from 10.1 percent; and

4. Transport, 0.2 percent from 0.6 percent.

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

1. Furnishings, household equipment and routine household maintenance, 1.9 percent;

2. Health, 2.7 percent;

3. Information and communication, 0.2 percent;

4. Recreation, sport and culture, 1.0 percent;

5. Education Services, 7.4 percent;

6. Restaurants and accommodation services, 0.9 percent; and

7. Personal care, and miscellaneous goods and services, 0.7 percent.

Furthermore, financial services retained zero growth in February 2025.

1.2 Main Contributors to the February 2025 Overall Inflation

The top three commodity groups contributing to the February 2025 overall inflation for the bottom 30% income households of the province were the following:

1. Food and non-alcoholic beverages with 46.3 percent share or 1.6 percentage points; and

2. Housing, water, electricity, gas and other fuels with 44.9 percent share or 1.6 percentage points; and

3. Restaurants and accommodation services with 3.1 percent share or 0.1 percentage point.

    

Food Inflation

Food inflation for the bottom 30% income households at the provincial level also exhibited an uptrend at 3.4 percent in February 2025 from 0.4 percent in January 2025. In February 2024, food inflation was higher at 11.2 percent.

2.1 Main Drivers to the Upward Trend of the February 2025 Food Inflation

The uptrend in the food inflation for the bottom 30% income households of the province in February 2025 was primarily contributed by the slower annual decrease of 5.3 percent in the rice index in February 2025 from an annual decrease of 10.8 percent in January 2025. This was followed by meat and other parts of slaughtered land animals with a faster year-on-year mark up of 12.2 percent during the month from 5.9 percent in January 2025. Fish and other seafood ranked third main contributor to the acceleration of food inflation in February 2025 with a faster annual increment of 11.1 percent during the month from 8.1 percent in January 2025.

In addition, faster annual gain in the index of milk, other dairy products and eggs was recorded at 0.1 percent in February 2025 from a year-on-year decline of 2.8 percent in January 2025.

Moreover, oils and fats recorded a slower annual decrease of 6.4 percent in February 2025 from a year-on-year decline of 6.5 percent in the previous month.  A slower annual drop of 1.5 percent was also noted in the sugar, confectionery and desserts index during the month from an annual decline of 3.3 percent in the previous month.

On the contrary, slower annual increases were observed in the following food groups during the month:

1. Flour, bread and other bakery products, pasta products, and other cereals, 2.6 percent from 3.0 percent;

2. Fruits and nuts, 3.4 percent from 4.0 percent;

3. Vegetables, tubers, plantains, cooking bananas and pulses, 14.7 percent from 21.3 percent; and

4. Ready-made food and other food products not elsewhere classified, 9.5 percent from 10.6 percent.

Meanwhile, corn recorded zero growth in February 2025 from an annual mark up of 6.5 percent in January 2025.

1.2 Main Contributors to the Food Inflation

Food inflation contributed 46.1 percent or 1.6 percentage point to the overall inflation for the bottom 30% income households in the province in February 2025.

Among the food groups, the top three main contributors to food inflation for the bottom 30% income households during the month were the following:

1. Meat and other parts of slaughtered land animals with 64.2 percent share or 2.2 percentage points;

2. Fish and other seafood with 47.1 percent share or 1.6 percentage points; and

3. Vegetables, tubers, plantains, cooking bananas and pulses with 33.2 percent share or 1.1 percentage points.

SGD. DANITES E. TEÑIDO, PhD
Chief Statistical Specialist

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