The headline inflation rate in Butuan City increases to 2.4 percent in June 2025.

In June 2025, Butuan City's inflation rate accelerated to 2.4 percent from 1.6 percent in May 2025. This brings the average inflation rate from January 2025 to June 2025 to 1.4 percent. In comparison, the inflation rate in June 2024 was posted lower at 1.3 percent. (Figure 1, Table A and B) 

Major Contributor to the June 2025 Inflation

Of the 13 commodity groups, the main driver of overall inflation in June 2025 was the higher year-on-year growth rate in housing, water, electricity, gas, and other fuels, which rise to 6.3 percent from 5.4 percent in the previous month. This commodity group recorded a lower inflation rate of -5.3 percent in June 2024. Its contribution to overall inflation in June 2025 accounted for 42.3 percent of the total share.

This was followed by the heavily weighted food and non-alcoholic beverages group, which recorded an inflation rate of 1.4 percent, up from 1.1 percent in May 2025. This group posted a 3.7 percent inflation rate in June 2024, which was higher than the current month. It contributed a 25.8 percent share to overall inflation in Butuan City in June 2025.

Meanwhile, restaurants and accommodation services accounted for 15.9 percent of the total share, with an inflation rate of 5.1 percent in June 2025, from 1.9 percent in the previous month and 0.0 percent in June 2024, indicating that inflation was lower in June 2024 compared to June 2025.

Major Contributor to the Year-on-Year Inflation Trend

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

a.    Restaurant and accommodation services at 5.1 percent in June 2025 from 1.9 percent in the previous month. In June 2024, this commodity group recorded a 0.0 percent inflation rate, which was lower than the current month. It contributed a 30.6 percent share to the overall inflation rate in Butuan City.

b.    Housing, water, electricity, gas and other fuels, which recorded an inflation rate of 6.3 percent from 5.4 percent in the previous month. Additionally, this commodity group recorded a lower inflation rate of -5.3 percent in June 2024 and contributed 23.2 percent to the overall inflation.

c.    Food and non-alcoholic beverages at 1.4 percent from 1.1 percent during this month. This commodity group also recorded a higher inflation rate of 3.7 percent in June 2024. Food and non-alcoholic beverages accounted for 17.9 percent of the overall inflation of the city. 

Inflation Rate by Commodity Group

Food Alone Inflation

In June 2025, the overall food inflation at the Highly Urbanized City (HUC) level increase further to 1.4 percent from 1.0 percent in May 2025. In June 2024, food inflation was observed at a higher rate of 3.8 percent. The food groups contributing to the uptrend inflation in the food category are as follows:

1)    Fish and other seafood (ND) posted an increase in inflation rate of 9.3 percent during the month, from 7.5 percent in the previous month. This food group contributed 40.8 percent share to the overall food inflation of the city.

2)    Vegetables, tubers, plantains, cooking bananas and pulses (ND) ranked second with 0.1 percent in June 2025 from -4.2 percent in the previous month. This food category accounted for 38.8 percent share of the overall food inflation trend.

3)    Meat and other parts of slaughtered land animals (ND) experienced a decline in inflation, ranking third with 6.1 percent in June 2025, from 5.7 percent in May 2025. This food group contributed 9.8 percent to the overall food inflation trend for June 2025 in Butuan City.

The Purchasing Power of the Peso (PPP) decreases at Php 0.79 as of June 2025.

The Purchasing Power of the Peso (PPP) in Butuan City declined to Php 0.79 in June 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 79 centavos in June 2025. Consequently, consumers need Php 126.3 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