- INFLATION RATES FOR ALL ITEMS
Headline Inflation
The headline inflation in BARMM decreased to 0.2 percent in February 2025, down from 1.6 percent in January. In comparison, the inflation rate in February 2024 was significantly higher at 5.3 percent. The provinces of Basilan, Lanao del Sur, Maguindanao, Sulu, and Tawi-Tawi, as well as Cotabato City, an Independent Component City (ICC), recorded lower inflation rates compared to the previous month. (See Table 1 and Figure 2.)
Main Drivers to the Downward Trend of the Headline Inflation
The change in overall inflation in BARMM in February 2025 was primarily driven by the decrease in the index of Food and Non-Alcoholic Beverages with -0.6 percent from 0.4 percent. Followed by the Transport, which decreased at -1.3 percent in February 2025 from 3.7 percent in the previous month. Another contributor to the decreasing inflation was the Housing, Water, Electricity, Gas and Other Fuels sector, which also decreased at 1.7 percent.
Also, the following commodity groups showed a lower inflation rate compared to the previous month:
a. Alcoholic Beverages and Tobacco, 0.4 percent from 1.5 percent;
b. Clothing and Footwear, 0.7 percent from 1.7 percent;
c. Furnishing, Household Equipment, Routine and Maintenance of the House, 1.9 percent from 2.8 percent;
d. Recreation, Sport and Culture, 1.8 percent from 2.2 percent;
e. Restaurants and Accommodation Services, 3.5 percent from 4.9 percent;
f. Personal Care, Miscellaneous Goods and Services, 2.7 percent from 3.8 percent.
Meanwhile, the Heath and Information and Communication commodity groups recorded increase in February 2025 with 2.5 percent and 0.4 percent, respectively.
On the other hand, education and financial services remain the same as their January 2025 rates (Table 2)
INFLATION RATES FOR FOOD ITEMS
For food commodities, inflation decreased to -0.8 percent in February 2025 from 0.3 percent in the previous month. In February 2024, inflation of food items was higher at 6.1 percent. (Table 3)
The decrease in the region's food inflation was primarily driven by the lower index for Cereals, which decreased to -5.0 percent from -2.3 percent in the previous month. This was followed by Fish and other seafood decreased to -0.8 percent in February 2025, from 1.0 percent in January 2025. Additionally, the index for Milk, other dairy products, and eggs which also decreased to 2.3 percent during the month, compared to a 4.7 percent in January 2025.
Moreover, an increase in rates were also observed in the food group for Oils and fats, Fruits and nuts, Vegetables, tubers, cooking bananas, and pulses, Sugar, confectioner and desserts, and in Ready-made food and other food products.
Conversely, the food group comprising Meat and Other Parts of Slaughtered Land Animals recorded lower inflation rates in February 2025, decreasing to 3.9 percent from 5.3 percent in January 2025.
PURCHASING POWER OF PESO
In BARMM, the Purchasing Power of the Peso (PPP) is at PhP 0.79 as of February 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:
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.
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.
Weighting System
The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure.
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.
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
