1. Overall Inflation

La Union’s inflation rate for the bottom 30% income households decelerated to 2.2 percent in January 2025 from 2.9 percent in December 2024. In January 2024, inflation rate for the bottom 30% income households was posted at 5.5 percent.  (Table A and Figure1)

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

The downtrend in the inflation of the province in January 2025 for the bottom 30% income households was primarily influenced by the slower annual increment in the index of food and non-alcoholic beverages at 0.4 percent during the month from 1.5 percent in December 2024.

This was followed by housing, water, electricity, gas and other fuels with a slower annual increase of 10.1 percent in January 2025 from 10.9 percent in the previous month. Alcoholic beverages and tobacco ranked third main contributor to the downtrend of inflation for the bottom 30% income households with a slower annual mark up of 2.7 percent during the month from 3.2 percent in December 2024. In addition, transport also recorded a slower year-on-year growth of 0.6 percent in January 2025 from 0.7 percent in the previous month.

In contrast, a faster annual increase was observed in the index of clothing and footwear at 2.3 percent in January 2025 from 2.2 percent in December 2024.   Furnishings, household equipment and routine household maintenance also recorded a faster annual growth of 1.9 percent in January 2025 from 1.5 percent in the previous month. at 2.3 percent and 1.9 percent in January 2025 from 2.2 percent and 1.5 percent in December 2024, respectively.

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

1. Health, at 2.7 percent;

2. Information and communication, at 0.2 percent;

3. Recreation, sport and culture, at 1.0 percent;

4. Education Services, at 7.4 percent;

5. Restaurants and accommodation services, at 0.9 percent; and

6. Personal care, and miscellaneous goods and services, at 0.7 percent.

Furthermore, financial services retained its zero growth in January 2025.

1.2 Main Contributors to the January 2025 Overall Inflation

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

1. Housing, water, electricity, gas and other fuels with 72.8 percent share or 1.6 percentage points;

2. Food and non-alcoholic beverages with 9.3 percent share or 0.2 percentage point; and

3. Restaurants and accommodation services with 5.0 percent share or 0.1 percentage point.

    

Food Inflation

Food inflation for the bottom 30% income households at the provincial level also exhibited a downtrend at 0.4 percent in January 2025 from 1.5 percent in December 2024. In January 2024, food inflation was observed at 11.0 percent.

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

The downtrend in the food inflation for the bottom 30% income households of the province in January 2025 was primarily contributed by the faster annual decrease of 10.8 percent in the rice index in January 2025 from an annual decrease of 3.0 percent in December 2024. This was followed by milk, other dairy products and eggs with a year-on-year decline of 2.8 percent during the month from an annual growth of 2.2 percent in December 2024.   Meat and other parts of slaughtered land animals ranked third main contributor to the deceleration of food inflation in January 2025 with a slower annual increase of 5.9 percent during the month from 7.5 percent in December 2024.

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 3.3 percent in December 2024.  Ready-made food and other food products not elsewhere classified also posted a slower annual increment in January 2025 at 10.6 percent from 11.8 percent in the previous month.

On the contrary, a faster annual increase was observed in the index of fish and other seafood at 8.1 percent in January 2025 from 1.7 percent in December 2024. Vegetables, tubers, plantains, cooking bananas and pulses also recorded a faster year-on-year growth of 21.3 percent in January 2025 from 7.7 percent in December 2024.

Moreover, fruits and nuts recorded an annual mark up of 4.0 percent in January 2025 from a year-on-year decline of 5.1 percent in the previous month.  A slower annual decrease of 3.3 percent was also noted in the sugar, confectionery and desserts index during the month from an annual decline of 3.5 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. 

1.2 Main Contributors to the Food Inflation

Food inflation contributed 8.7 percent or 0.2 percentage point to the overall inflation for the bottom 30% income households in the province in January 2025.

Among the food groups, the top three main contributors to the food inflation during the month were the following:

1. Vegetables, tubers, plantains, cooking bananas and pulses with 1,098.1 percent share or 4.4 percentage points;

2. Fish and other seafood with 783.2 percent share or 3.1 percentage points; and

3. Meat and other parts of slaughtered land animals with 708.4 percent share or 2.8 percentage points.

SGD. DANITES E. TEÑIDO, PhD
Chief Statistical Specialist

/MMAAA