1. Headline Inflation

La Union’s inflation rate for the bottom 30% income households slowed down further to 1.0 percent in April 2025 from 1.1 percent in March 2025. This brings the provincial average inflation from January to April 2025 for this income group to 2.0 percent. In April 2024, inflation rate for the bottom 30% income households was higher at 6.5 percent.  (Table A and Figure1)

1.1 Main Drivers to the Downward Trend of April 2025 Overall Inflation

The downtrend in the overall inflation of the province for the bottom 30% income households in April 2025 was primarily brought about by the faster annual decline of 0.7 percent in the index of food and non-alcoholic beverages during the month from an annual decrease of 0.5 percent in March 2025. Personal care, and miscellaneous goods and services followed with a slower year-on-year mark up of 0.2 percent in April 2025 from 0.3 percent in the previous month.

On the contrary, clothing and footwear recorded a faster annual growth rate during the month at 1.1 percent from 0.7 percent in the previous month. Housing, water, electricity, gas and other fuels also recorded a faster inflation rate at 7.8 percent in April 2025 from 7.6 percent in March 2025.

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

1. Alcoholic beverages and tobacco, 1.5 percent;

2. Furnishings, household equipment and routine household maintenance, 1.4 percent;

3. Health, 1.5 percent;

4. Information and communication, 0.2 percent;

5. Recreation, sport and culture, 1.0 percent;

6. Education services, 7.4 percent; and

7. Restaurants and accommodation services, 0.9 percent.

Furthermore, transport also retained its annual decline of 1.9 percent in April 2025 while financial services recorded zero growth during the month.

1.2 Main Contributors to the April 2025 Overall Inflation

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

1. Housing, water, electricity, gas and other fuels with 124.7 percent share or 1.3 percentage points;

2. Restaurants and accommodation services with 9.4 percent share or 0.1 percentage point; and

3. Alcoholic beverages and tobacco with 4.5 percent share or 0.0 percentage point.

    

Food Inflation

Food inflation for the bottom 30% income households at the provincial level also exhibited a downtrend with an annual decline of 0.8 percent in April 2025 from an annual decrease of 0.5 percent in March 2025. In April 2024, food inflation was higher at 11.1 percent.

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

The deceleration of food inflation for the bottom 30% income households of the province in April 2025 was primarily contributed by the slower annual increase of 6.0 percent in the fish and other seafood index during the month from 9.5 percent in March 2025. Vegetables, tubers, plantains, cooking bananas and pulses followed with a slower year-on-year mark up of 7.7 percent in April 2025 from 12.3 percent in March 2025.   Meat and other parts of slaughtered land animals ranked third main contributor to the downtrend of food inflation in April 2025 with a slower annual increment of 9.5 percent during the month from 11.1 percent in the previous month.

In addition, compared with their previous month’s inflation rates, lower rates were noted in the indices of the following food groups:

1. Flour, bread and other bakery products, pasta products, and other cereals, 1.9 percent from 2.0 percent;

2. Milk, other dairy products and eggs, 2.2 percent from 2.9 percent;

3. Fruits and nuts, 3.0 percent from 5.5 percent; and

4. Ready-made food and other food products not elsewhere classified, 10.1 percent from 10.7 percent.

In contrast, a slower annual decrease of 13.1 percent was noted in the rice index during the month from an annual decline of 15.6 percent in the previous month.

Sugar, confectionery and desserts retained its previous months’ inflation of 0.6 percent while corn, and oils and fats recorded zero growth in April 2025.

1.2 Main Contributors to the Food Inflation

Food inflation contributed -35.7 percent or -0.36 percentage point to the overall inflation for the bottom 30% income households in the province in April 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. Cereals and cereal products with 569.9 percent share or -4.6 percentage points;

2. Oils and fats with 0.0 percent share or 0.0 percentage point; and

3. Sugar, confectionery and desserts with -3.0 percent share or 0.0 percentage point.

SGD. DANITES E. TEÑIDO, PhD
Chief Statistical Specialist

/MMAAA