1. Headline Inflation

La Union’s headline inflation decelerated to 2.0 percent in January 2025 from 2.4 percent in December 2024.   In January 2024, the inflation rate was higher at 3.1 percent.  (Table A and Figure1)

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

The downtrend in the inflation of the province in January 2025 was primarily influenced by the slower annual increment in the index of food and non-alcoholic beverages at 1.2 percent during the month from 1.6 percent in December 2024.

This was followed by housing, water, electricity, gas and other fuels with a slower annual increase of 7.2 percent in January 2025 from 7.9 percent in the previous month. Education services ranked third main contributor to the downtrend of inflation with a slower annual mark up of 2.7 percent during the month from 3.5 percent in December 2024. In addition, alcoholic beverages and tobacco also recorded a slower year-on-year growth of 1.7 percent in January 2025 from 1.9 percent in the previous month.

In contrast, faster annual increase was observed in the index of furnishings, household equipment and routine household maintenance at 0.6 percent in January 2025 from 0.5 percent in December 2024.  Moreover, transport recorded a slower annual decline of 0.3 percent during the month from a year-on-year decrease of 0.4 percent in December 2024.

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

1. Clothing and footwear, at 2.2 percent;

2. Health, at 1.8 percent;

3. Information and communication, at 0.3 percent;

4. Recreation, sport and culture, at 1.6 percent;

5. Restaurants and accommodation services, at 0.5 percent; and

6. Personal care, and miscellaneous goods and services, at 0.6 percent.

Furthermore, financial services recorded zero growth in January 2025 from an annual decline of 0.1 percent in December 2024.

1.2 Main Contributors to the January 2025 Headline Inflation

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

1. Housing, water, electricity, gas and other fuels with 62.8 percent share or 1.3 percentage points;

2. Food and non-alcoholic beverages with 21.3 percent share or 0.4 percentage point; and

3. Clothing and footwear with 3.6 percent share or 0.1 percentage point.

    

2. Food Inflation

Food inflation at the provincial level also decelerated to 1.2 percent in January 2025 from 1.7 percent in December 2024.   In January 2024, food inflation was higher at 7.6 percent.

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

The deceleration of food inflation in the province in January 2025 was primarily contributed by the faster annual decrease of 10.4 percent in the rice index from its annual decline of 3.1 percent in December 2024. This was followed by meat and other parts of slaughtered land animals with a slower annual increase of 5.4 percent in January 2025 from 7.3 percent in December 2024.  The third contributor to the downtrend of food inflation in the province in January 2025 was milk, other dairy products and eggs with an annual decrease of 2.0 percent during the month from a year-on-year mark up of 1.7 percent in the previous month.

In addition, a slower annual gain in the index of flour, bread and other bakery products, pasta products, and other cereals was recorded at 3.0 percent in January 2025 from 3.4 percent in December 2024.  Ready-made food and other food products not elsewhere classified also posted a slower annual increment in January 2025 at 2.6 percent from 4.4 percent in the previous month.

On the contrary, a faster annual increase was observed in the index of fish and other seafood at 5.0 percent in January 2025 from 2.2 percent in December 2024. Vegetables, tubers, plantains, cooking bananas and pulses also recorded a faster year-on-year growth of 20.5 percent in January 2025 from 5.2 percent in December 2024.

Moreover, fruits and nuts recorded an annual mark up of 4.6 percent in January 2025 from a year-on-year decline of 5.1 percent in the previous month.  A slower annual decrease of 2.7 percent was also noted in the sugar, confectionery and desserts index during the month from an annual decline of 2.8 percent in the previous month.

Meanwhile, corn retained a year-on-year increase of 6.5 percent in January 2025. Oils and fats also retained an annual decrease of 1.6 percent during the month. 

2.2 Main Contributors to the January 2025 Food Inflation

Food inflation contributed 20.6 percent or 0.4 percentage point to the overall inflation in January 2025. The top three food groups in terms of contribution to the food inflation during the month were the following:

1. Vegetables, tubers, plantains, cooking bananas and pulses with 182.1 percent share or 2.2 percentage points;

2. Meat and other parts of slaughtered land animals, with 137.3 percent share or 1.7 percentage points; and

3. Fish and other seafood, with 84.6 percent share or 1.0 percentage point.

SGD. DANITES E. TEÑIDO, PhD
Chief Statistical Specialist 

/MMAAA