A. INFLATION RATES FOR ALL ITEMS

Headline Inflation

The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) registered a headline inflation of -1.6 percent in May 2025. In April, the inflation rate was recorded at   -1.4 percent. In comparison, the inflation rate in May 2024 was higher at 5.8 percent. Basilan, Lanao del Sur, and Cotabato City, an Independent Component City (ICC), showed lower inflation rates compared to their previous month’s rates. While Maguindanao and Tawi-Tawi posted higher inflation rates than in the previous month. Meanwhile, Sulu retained its rate from April 2025 (See Table 1 and Figure 2.)

Main Drivers to the Constant Trend of the Headline Inflation

The overall inflation in BARMM decreased to -1.6 percent in May 2025 and was primarily driven by the decrease in the index Housing, water, electricity, gas and other fuels, 1.0 percent from 0.4 percent; Transport which decreased at -0.4 percent in May 2025 from 0.5 percent in the previous month, and Personal care, miscellaneous goods and service, 0.7 percent from 1.3 percent.

Meanwhile, the following commodity groups shows higher inflation in May 2025:

    a. Alcohol Beverages and Tobacco, 2.0 percent from 1.5 percent;
    b. Clothing and Footwear, 1.1 percent from 0.7 percent;
    c. Health, 2.8 percent from 2.4 percent;
    d. Information and Communication, 0.4 percent from 0.2 percent;
    e. Recreation, Sports and Culture, 1.3 percent from 1.0 percent;
    f. Restaurants and Accommodation Services, 1.8 percent from 1.4 percent.

On the other hand, the following commodities remain the same as their April 2025 rates: (Table 2)

    a. Food and Non-Alcoholic Beverages, -3.2 percent;
    b. Furnishings, Household Equipment and Routine Household Maintenance, 0.8 percent;
    c. Education Services, 4.2 percent;
    d. Financial Services, 0.0 percent;

B. INFLATION RATES FOR FOOD ITEMS

For food commodities, inflation retained its revised rate to -3.6 percent in May 2025. In May 2024, inflation of food items was higher at 7.3 percent. (Table 3)
The retaining rate in the region's food inflation was primarily driven by the lower index for Cereals and cereal products with -10.5 percent followed by the commodities below:

    a. Corn with -5.7 percent from -5.8 percent;
    b. Flour, Bread and Other Bakery Products, Pasta Products,  and Other Cereals with 0.0 percent from 0.1 percent;
    c. Oils and fats with 2.7 percent from 3.4 percent;
    d. Sugar, confectionery and desserts with -0.6 percent from 0.5 percent; and
    e. Ready-made food and other food products n.e.c. with -1.1 percent from -0.1 percent.

Moreover, the following food commodity groups shows higher inflation in May 2025 than in previous month:

    a. Meat and other parts of slaughtered land animals, which increased to 1.3 percent from -1.3 percent;
    b. Fish and other seafood with 3.0 percent from 0.9 percent;
    c. Milk, other dairy products and eggs with 5.3 percent from 3.8 percent;
    d. Fruits and Nuts with 5.0 percent from 3.2 percent; and
    e. Vegetables, tubers, plantains, cooking bananas and pulses with 2.4 percent from 2.1 percent.

C. PURCHASING POWER OF PESO

In BARMM, the Purchasing Power of the Peso (PPP) is at PhP 0.80 as of May 2025. (Figure 2) 

TECHNICAL NOTES:

Consumer Price Index (CPI)

The CPI is an indicator of the changes in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.
Uses of CPI

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy.

Computation of CPI

    The computation of the CPI involves consideration of the following important points: 

    a. Base Period
        The reference date or base period is the benchmark or reference date or period at which the index is taken as equal to 100.

    b. Market Basket
        A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the         composite price behavior of all goods and services purchased by consumers.
    c. Weighting System
        The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
    d. Formula
        The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2018) weight.
    e. Geographic Coverage
        CPI values are computed at the national, regional, and provincial levels, and for selected cities. 
Inflation Rate

    the rate of change of the CPI expressed in percent. Inflation is interpreted in terms of the declining purchasing power of the peso.

Headline Inflation

    refers to the rate of change in the CPI, a measure of the average standard “basket” of goods and services consumed by a typical family.

Purchasing Power of Peso

    shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Note: The dataset used in the special release is exclusive for BARMM provinces including Cotabato City and excluding Special Geographic Area (SGA).

Approved for release:

SGD
ENGR. AKAN G. TULA
OIC-Regional Director

_EDFE/BMB/AAA