1.    Headline Inflation

The headline inflation in the province of Surigao del Norte increase to 0.9 percent in May 2025, from 0.5 percent in April 2025. This is the first increase in the inflation this year. On the other hand, the average inflation for the past 12 months of the year stood at 1.9 percent. (Table A and Figure 1)

For comparison, the provincial headline inflation is higher compared with the regional and lower than the national headline inflation in May 2025.

1.1    Main Drivers to the Upward Trend of the Headline Inflation

The decrease in the inflation of the province in May 2025 was mainly brought about by the increase in the Housing, Water, Electricity, Gas and Other Fuels; Transport; and Health. Aside from these commodity groups; Alcoholic Beverages and Tobacco; Restaurants and Accommodation Services; Personal Care, and Miscellaneous Goods and Services; Furnishings, Household Equipment and Routine Household Maintenance; and Information and Communication also present an increase in their year-on-year inflation rate. (Table 10)
On the other hand, a decrease in the year-on-year inflation rate of the two commodity groups namely: Food and Non-Alcoholic Beverages; and Clothing and Footwear was observed.

The rest of the commodity groups retained their previous month’s inflation
rates or had zero percent annual growth rates. These are:

a.    Recreation, Sport and Culture;
b.    Education Services; and
c.    Financial Services;

1.2    Main Contributors to the Headline Inflation

The top three commodity groups contributing to the May 2025 overall inflation were the following:    (Table 11)
a.    Housing, water, electricity, gas and other fuels with 101.4 percent share or 0.91 percentage points;
b.    Alcoholic beverages and tobacco with 21.0 percent share or 0.19 percentage points; and
c.    Personal care, and miscellaneous goods and services with 9.5 percent share or 0.09 percentage points.
All top three commodity groups have an increasing trend in the inflation rate.

2.    Food Index

This month’s food index, which is -1.6 has shown a decrease from -1 in April 2025. In April 2024, the food index was higher at 5.2 percent. (Table 7)

2.1    Main Drivers to the Downward Trend of the Headline Food Inflation

The three major contributors to the decreasing trend of the food inflation rate from April to May 2025 are cereals and cereal products; vegetables, tubers, plantains, cooking bananas and pulses; and meat and other parts of slaughtered land animals. Aside from these commodity groups; Sugar, confectionery and desserts; and Oils and fats also present a decrease in their inflation.

On the other hand, all the other four food groups namely; fish and other seafood; milk, other dairy products and eggs; fruits and nuts; and ready- made food and other food products n.e.c. have increased in their inflation rate from April to May 2025. (Table 12)

2.2    Main Contributors to the Food Inflation

Food inflation shared 45.2 percent to the overall inflation. The top three food groups in terms of contribution to the food inflation during the month were the following: (Table 13)

d.    Cereals and cereal products with 332.3 percent share or -5.32 percentage points;
e.    Vegetables, tubers, plantains, cooking bananas and pulses with 32.4 percent share or -0.52 percentage points; and
f.    Oils and fats with -0.5 percent share or 0.01 percentage points.

3.    Purchasing Power of Peso

The purchasing power of peso is 0.78. This would mean that the amount of Php 100.00 in 2018 is now equivalent to Php 78.00.  Moreover, this would also mean that you will need Php 128.50 to purchase the same goods and services worth Php 100.00 in 2018.

Approved for release:

(Sgd.) VIRGILIO G. AVELINA, JR
(Supervising Statistical Specialist)
Officer-in-Charge
PSA Surigao del Norte