Headline Inflation

The headline inflation rate in the Province of Dinagat Islands dropped to -1.1 percent in February 2025, following a 1.0 percent inflation rate in January 2025. This represents a significant 2.1 percentage point decline from the previous month and a 7.2 percentage point reduction compared to February 2024. The year-to-date inflation rate averaged 0.0 percent, notably lower than the national average of 2.5 percent and the regional average of 1.3 percent (refer to Table A and Figure 1).

Key Drivers of the Inflation Downtrend

The decline in inflation during February 2025 was primarily driven by the Food and Non-Alcoholic Beverages sector, which registered an inflation rate of -2.4 percent. This sector accounted for 96.0 percent of the overall decrease in provincial inflation.

Additionally, the Transport sector recorded an inflation rate of -2.7 percent, contributing 2.5 percent to the overall decrease. The Housing, Water, Electricity, Gas, and Other Fuels sector also played a significant role, with an inflation rate of 0.5 percent, representing a 1.4 percent downtrend in the total provincial inflation rate.

Other sectors that contributed to the decline in price indices include:

1.    Personal Care and Miscellaneous Goods and Services: Inflation decreased slightly to 0.9 percent from 1.0 percent in the previous month.

Sectors with Rising Inflation

Despite the overall decline, several sectors experienced inflationary pressures:

1.    Alcoholic Beverages and Tobacco: Increased to 5.2 percent from 2.5 percent.
2.    Clothing and Footwear: Rose to 0.4 percent from 0.0 percent.
3.    Furnishings, Household Equipment, and Routine Household Maintenance: Climbed to 2.7 percent from 2.1 percent.
4.    Health: Inflation rate improved from -2.1 percent to -1.1 percent.
5.    Information and Communication: Increased from 0.5 percent to 1.4 percent.
6.    Recreation, Sports, and Culture: Rose to 2.6 percent from 2.4 percent.
7.    Restaurants and Accommodation Services: Increased to 1.0 percent from 0.8 percent.

Meanwhile, some commodity groups maintained stable inflation rates in February 2025:

1.    Education Services: Remained unchanged at 0.0 percent.
2.    Financial Services: Held steady at 0.0 percent.

Top Contributors to Overall Provincial Inflation

The key contributors to the overall -1.1 percent inflation rate in February 2025 for all income households were:

1.    Food and Non-Alcoholic Beverages – 0.49 percentage points
2.    Housing, Water, Electricity, Gas, and Other Fuels – 0.29 percentage points
3.    Restaurants and Accommodation Services – 0.25 percentage points
4.    Personal Care and Miscellaneous Goods and Services – 0.15 percentage points
5.    Alcoholic Beverages and Tobacco – 0.12 percentage points

Food Index

The food index in February 2025 exhibited a sharp decline, dropping to -3.0 percent from 1.5 percent in January 2025. The primary contributors to this decline were:
1.    Cereals and Cereal Products (ND) – Inflation plunged to -11.5 percent from -0.1 percent, accounting for 137.3 percent of the overall food inflation decrease.
2.    Fish and Other Seafood – Inflation dropped to -1.8 percent from 0.2 percent, contributing 30.3 percent to the total food index.
3.    Sugar, Confectionery, and Desserts (ND) – Inflation declined to -0.2 percent from -2.9 percent, making up 0.1 percent of overall food inflation.

Purchasing Power of the Peso

The Purchasing Power of the Peso (PPP) in the Province of Dinagat Islands remained stable at Php 0.73 in February 2025, reflecting its relative value since December 2024.

(Sgd.) GLENNBOY C. LISTON
Chief Statistical Specialist
Dinagat Islands-PO