A. INFLATION RATES FOR ALL ITEMS

Headline Inflation

The headline inflation in BARMM in March 2025 stood at 0.2 percent, similar to the rate posted in February 2025. In comparison, the inflation rate in March 2024 was much higher at 5.0 percent. Basilan and Cotabato City, an Independent Component City (ICC), showed lower inflation rates compared to their previous month’s rates. On the other hand, Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi posted higher inflation rates than in the previous month. (See Table 1 and Figure 2.)

Main Drivers to the Trend of the Headline Inflation

Overall, the inflation in BARMM remained constant from February to March 2025. However, among the commodity groups, decreases in the indices were observed in Restaurants and accommodation services, which slowed down to 3.1 percent in March 2025 from 3.5 percent in the previous month; Housing, water, electricity, gas, and other fuels sector, which also posted a decrease of 1.3 percent; and, Personal care and miscellaneous goods and services sector, which showed a slower pace of increase at 2.4 percent.

Also, the following commodity group recorded an increase at a slower pace in its inflation rate compared to the previous month:
a. Alcoholic beverages and tobacco, 0.3 percent from 0.4 percent;
b. Furnishings, household equipment and routine household maintenance, 1.7 percent from 1.9 percent;
c. Information and communication, 0.1 percent from 0.4 percent; and,
d. Recreation, sport and culture, 1.3 percent from 1.8 percent.

On the other hand, the following commodity groups exhibited faster movement of prices in March 2025:
a. Clothing and footwear, 0.8 percent from 0.7 percent;
b. Health, 3.5 percent from 2.5 percent; and,
c. Transport, -0.5 percent from -1.3 percent;

Meanwhile, the Education and Financial services commodities remain the same as their February 2025 rates with 5.0 percent and 0.0 percent, respectively: (Table 2)

B. INFLATION RATES FOR FOOD ITEMS

For food commodities, inflation decreased to -0.9 percent in March 2025 from -0.8 percent in the previous month. In March 2024, inflation of food items was higher at 5.8 percent. (Table 3)

The decrease in the region's food inflation was primarily driven by the lower index for Cereals, which decreased to -7.6 percent from -5.0 percent in the previous month. This was followed by Ready-Made Food and Other Food Products N.E.C. which decreased to 0.9 percent during the month, compared to 1.4 percent in February 2025.

Additionally, the index for Meat and Other Parts of Slaughtered Land Animals decreased to 3.5 percent in March 2025, from 3.9 percent in February 2025.

On the other hand, the following commodities show an increase in rates during the month of March 2025:
a. Corn, -5.4 percent from -5.8 percent;
b. Fish and other seafood (ND), 2.6 percent from -0.8 percent;
c. Milk, other dairy products and eggs (ND), 3.5 percent from 2.3 percent;
d. Oil and fats (ND), 3.1 percent from 2.4 percent;
e. Fruits and nuts (ND), 4.2 percent from 3.7 percent;
f. Vegetables, tubers, plantains, cooking bananas and pulses (ND), 2.5 percent from 1.6 percent; and
g. Sugar, confectionery and desserts (ND), -0.1 percent from -1.7 percent.

C. PURCHASING POWER OF PESO

In BARMM, the Purchasing Power of the Peso (PPP) is at PhP 0.79 as of March 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:

ENGR. AKAN G. TULA
OIC-Regional Director