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Release Date :
Reference Number :
WPR-2025-152

 

 

The headline inflation rate in Butuan City increases to 1.1 percent in February 2025.

In February 2025, Butuan City's inflation rate accelerated to 1.1 percent from 0.0 percent in January 2025. This brings the average inflation rate from February 2024 to February 2025 to 0.6 percent. In comparison, the inflation rate in February 2024 was posted higher at 1.6 percent. (Figure 1, Table A and B)

 

 

Major Contributors to the February 2025 Inflation

Among the 13 commodity groups, the main driver of the upward trend in overall inflation in February 2025 are the following:

a.    Housing, water, electricity, gas and other fuels at 2.1 percent during the month from -0.8 percent in the previous month. In February 2024, this commodity group recorded a -5.4 percent inflation rate, which was lower than the current month. It contributed a 32.3 percent share to the overall inflation rate in Butuan City for the current month.

b.    Food and non-alcoholic beverages, which recorded an inflation rate of 0.7 percent from -1.0 percent in the previous month. Additionally, this commodity group recorded a higher inflation rate of 3.8 percent in February 2024 and contributed 24.8 percent to the overall inflation.

c.    Restaurants and accommodation services at 1.9 percent from 1.0 percent in January 2025. This commodity group also recorded a higher inflation rate of 3.1 percent in February 2024, accounting for 10.8 percent of the overall inflation of the city. 

 

 

Major Contributor to the Year-on-Year Inflation Trend

Of the 13 commodity groups, the main driver to the uptrend of the overall inflation in February 2025 are the following:

a.    Food and non-alcoholic beverages experienced an increase in prices, particularly for cereals and cereal product, causing the inflation rate to rise at 0.7 percent inflation in February 2025 from -1.0 percent inflation in January 2025. This group constituted 52.4 percent share of the overall inflation of Butuan City.

b.    Housing, water, electricity, gas and other fuels ranked second in terms of its influence on the uptrend with 2.1 percent inflation in February 2025 from -0.8 percent inflation in the previous month. This commodity group contributed 38.7 percent share of the overall inflation of the city.

c.    Restaurants and accommodation services secured the third position, with its inflation rate of 1.9 percent in February 2025, from 1.0 percent in the previous month, contributed to the overall inflation in Butuan City at 4.4 percent share.

 

Inflation Rate by Commodity Group

 

Food Alone Inflation

In February 2025, the overall food inflation at the Highly Urbanized City (HUC) level increase to 0.7 percent in February 2025, from 1.1 percent in January 2025. In February 2025, food inflation was observed at a higher rate of 3.9 percent. The food groups contributing to the uptrend inflation in the food category are as follows:

a.    Cereals and cereals product (ND) registered the highest share to the overall inflation in Butuan City recorded at 38.6 percent. This food group’s inflation registered at -4.9 percent this month from -7.3 percent in the previous month.

b.    Fish and other seafood (ND) secured the second position in the ranking with 0.3 percent in February 2025 from -2.7 percent in the previous month. This food category accounted for a substantial 22.0 percent share of the overall inflation trend in Butuan City.

c.    Fruits and nuts (ND) experienced a notable increase in inflation, ranking third with 17.0 percent in the current month, from 3.8 percent in January 2025. This food group contributed 20.9 percent to the overall food inflation trend for February 2025.

 

The Purchasing Power of the Peso (PPP) remains steady at Php 0.80 as of February 2025.

 

The Purchasing Power of the Peso (PPP) in Butuan City declined to Php 0.80 in February 2025, reflecting a further reduction in its value and the continued impact of inflation on consumer buying power.

In comparison, a peso in 2018 is now equivalent to only 80 centavos in February 2025. Consequently, consumers need Php 124.9 to acquire the same goods and services that were priced at Php100.00 in 2018, highlighting the costlier economic environment driven by rising price 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 the 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
 

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