INFLATION RATES FOR ALL ITEMS

          The headline inflation rate in Lanao del Sur province increased further to 0.5 percent in June 2025 from negative 0.2 percent in May 2025 (see Figure 1). This represents 4.3 percentage points lower from its level 4.8 percent in the same month last year. Moreover, Lanao del Sur posted a 1.4 percent year-to-date inflation rate in All items. (see Table 1)

        The increase in price in the following Commodity Groups in province’s inflation was mainly brought about by the higher annual increases in the index for Food and Non-Alcoholic Beverages at negative 0.5 percent, Restaurants and Accommodation Services at 3.1 percent and Transport at negative 2.1 percent. Also contributing to the uptrend in the overall inflation during the period were the higher annual increment in the indices of the following commodity groups as compared with their previous month’s inflation rates:

        a. Recreation, sport and culture at 6.6 percent;
        b. Clothing and footwear at 2.7 percent;
        c. Education services at 11.9 percent;
        d. Personal care, and miscellaneous goods and services at 1.1 percent;
        e. Furnishing, Household Equipment and Routine Maintenance of the House at 2.0 percent;
        f. Information and Communication at 0.3 percent; and
        g. Alcoholic beverages and tobacco at 0.9 percent.

        On the other hand, the commodity group of Housing, Water, Electricity, Gas and Other at 1.6 percent, shows slower inflation rate in June 2025.Meanwhile, the commodity groups of Health and Financial Services are retained their previous month’s inflation rate. (see Table 2)

INFLATION RATES FOR FOOD ITEMS

            For food index, it increased further by negative 0.7 percent in June 2025 from negative 1.7 percent in the previous month. In June 2024, food index was higher at 6.7 percent.

            The increase in the province’s food inflation rate was mainly brought about by the higher annual increases in the index for Cereals and cereal products at negative 4.7 percent, Fish and other seafood at 4.1 percent and Vegetables, tubers, plantains, cooking bananas and pulses at negative 1.0 percent. Also contributing to the uptrend in the overall food inflation during the period were the higher annual increment in the indices of the following food commodity groups as compared with their previous month’s inflation rates:

            a. Fruits and nuts at 3.3 percent;
            b. Meat and other parts of slaughtered land animal at 7.8 percent; and
            c. Oils and Fats at 3.6 percent.

            On the other hand, the annual slower indices on the commodity group are Milk, Other Dairy Products, and Eggs at 9.8 percent and Sugar, Confectionery and Desserts at negative 3.8 percent.

            Meanwhile, the commodity group of Ready-Made Food and Other Food Products N.E.C retained their previous month’s inflation rate. (see Table 3)

PURCHASING POWER OF PESO

            Purchasing Power of Peso (PPP) is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines. As shown in Figure 2, Lanao del Sur, PPP is slower compared to previous month at 0.80 as of June 2025.

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 (2006) 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 declining purchasing power of 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 region and Lanao del Sur province.

MOHAMMADALI R. ALONTO, MPA
OIC Chief Statistical Specialist