The headline inflation rate in Agusan del Norte decreases to 0.4 percent in May 2025.

In May 2025, the inflation rate for the Province of Agusan del Norte decreases to 0.4 percent from 0.6 percent in April 2025. This brings the provincial average inflation from January 2025 to May 2025 at 0.9 percent inflation. In May 2024, the inflation rate was higher at 3.3 percent. (Figure 1, Table A and B)

Major Contributor to the May 2025 Inflation

Among the 13 commodity groups, the main driver of the overall inflation in May 2025 was the lower year-on-year growth rate of alcoholic beverages and tobacco at 7.6 percent during the month, from 8.7 percent in the previous month. While in May 2024, this commodity group recorded 3.6 percent inflation, which is lower than the current month. Its contribution to the overall inflation for May 2025 accounted     56.9 percent of the total share.

Following the said commodity group is housing, water, electricity, gas and other fuels at 0.8 percent inflation in the current month, from -1.2 percent inflation in April 2025, and -5.6 percent inflation during the same month of 2024, contributing to 31.0 percent of the total share. While clothing and footwear recorded 24.9 percent of the total share, at 3.9 percent inflation in May 2025, from 4.1 percent inflation in the previous month, and 2.4 percent inflation in May 2024 which indicated a lower inflation, compared to the reference month.

Major Contributor to the Year-on-Year Inflation Trend

Of the thirteen (13) commodity groups, the heavily weighted food and non-alcoholic beverages recorded the highest rate of change at -0.1 percent inflation in May 2025, from 0.9 percent inflation in the previous month. This commodity greatly influenced the downward trend in the overall inflation of the province, contributing to a total of 94.6 percent share.

Following the said group, alcoholic beverages and tobacco also posted a decrease in May 2025 at 7.6 percent inflation, from 8.7 percent inflation in April 2025. This commodity group accounted 4.1 percent share to the overall inflation trend of the province. Lastly, clothing and footwear posted a lower inflation rate at 3.9 percent in May 2025, from 4.1 percent in April 2025.

Food Alone Inflation

In May 2025, the overall food inflation at the provincial level decreased to -0.3 percent from 0.7 percent in April 2025. In May 2024, food inflation was observed at a higher rate of 8.2 percent. Among the food groups, cereals and cereal products mainly influenced the downward trend of food inflation in May 2025 at -9.9 percent, from -6.5 percent in the previous month. This food group contributed 84.3 percent share to the overall food inflation in the province. Following the mentioned food group, vegetables, tubers, plantains, cooking bananas and pulses also posted a decrease in the current month at -3.6 percent inflation, from 0.2 percent in April 2025, contributing to a total of 15.0 percent of the overall share of food inflation in the province. Additionally, ready-made food and other products not elsewhere classified recorded a lower inflation rate at 1.1 percent in May 2025, from 1.4 percent in April 2025.

In Agusan del Norte, the Purchasing Power of the Peso (PPP) remained steady at Php 0.81 in May 2025, indicating a strengthening of the peso despite ongoing inflation. This implies that a peso in 2018 is now equivalent to only 81 centavos. Consequently, consumers would need Php 123.00 in 2025 to purchase the same goods and services worth Php 100.00 in 2018, highlighting the sustained impact of the rising cost of living in the province.

TECHNICAL NOTES

The Philippine Statistics Authority generates and announces the monthly Consumer Price Index (CPI) based on the nationwide survey of prices for a given basket of goods and services. Two important indicators, the inflation rate and purchasing power of the peso (PPP), are derived from the CPI which are important in monitoring price stability and the value of the country’s currency.

The Consumer Price Index (CPI) is an indicator of the change in the average prices of goods and services commonly purchased by consumers relative to a base year. It shows how much on average prices of goods and services have increased or decreased from a particular reference period known as base year.

Inflation Rate refers to the rate of change in the average price level as measured by the CPI between two periods. It is interpreted in terms of declining purchasing power of money.

The Purchasing Power of the Peso (PPP) indicates the value of the peso in the period under review as compared to the value of the peso in the base period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Approved by:    

(Sgd.) REYNELO S. MAGNO
Chief Statistical Specialist, PSO – Agusan del Norte
Telephone number: (085) 817-3193 / Telefax No.: (085) 225 – 2097 
Email address: agusandelnorte@psa.gov.ph