The headline inflation rate in Butuan City increases to 1.9 percent in March 2025.

In March 2025, the headline inflation in Butuan City increased further to 1.9 percent, from 1.1 percent in February 2025. This brings the average inflation rate from January to March 2025 to 1.0 percent. In March 2024, inflation rate was lower at 1.1 percent. (Figure 1, Table A and B)

Major Contributors to the March 2025 Inflation

Among the 13 commodity groups, the main driver of the upward trend of the overall inflation in March 2025 was the heavily weighted food and non-alcoholic beverages, which recorded an inflation rate of 1.5 percent from 0.7 percent in the previous month. Additionally, this commodity group recorded a higher inflation rate of 5.2 percent in March 2024 and contributed 38.1 percent to the overall inflation. This was followed by housing, water, electricity, gas and other fuels at 4.1 percent during the month from 2.1 percent in the previous month. In March 2024, this commodity group recorded a -10.6 percent inflation rate, which was lower than the current month. It contributed a 34.6 percent share to the overall inflation rate in Butuan City for the current month. 

Major Contributor to the Year-on-Year Inflation Trend

Of the 13 commodity groups, the higher year-on-year growth in the indices of housing, water, electricity, gas and other fuels recorded 4.1 percent during the month from 2.1 percent in the previous month. In March 2024, this commodity group registered a -10.6 percent inflation rate, which was lower than the current month. It contributed a 48.2 percent to the overall inflation. Higher annual increments were also noted in the food and non-alcoholic beverages, which recorded an inflation rate of 1.5 percent from 0.7 percent in the previous month. Additionally, this commodity group recorded a higher inflation rate of 5.2 percent in March 2024 and contributed 44.6 percent share to the overall inflation rate in Butuan City for the current month.

Food Alone Inflation

The overall food inflation at the Highly Urbanized City (HUC) level accelerated to 1.5 percent in March 2025, from 0.7 percent in February 2025. In March 2024, food inflation was observed at a higher rate of 5.4 percent. The increase of food inflation was primarily influenced by the fish and other seafood (ND) contributed 86.2 percent share to the overall food inflation in the city. This food group registered at 10.8 percent this month from 0.3 percent in the previous month. This was followed by the vegetables, tubers, plantains, cooking bananas and pulses (ND) of -0.4 percent from -3.7 percent in the previous month.

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

The Purchasing Power of the Peso (PPP) in Butuan City has remained constant at Php 0.80 in March 2025. This indicates that the Philippine Peso has exhibited resilience in preserving its purchasing power within the city.

To expound further, a peso in 2018 has experienced a decrease in value to 80 centavos in March 2025. Consequently, it now requires Php125.7 to acquire equivalent goods and services that were priced at Php100.00 in 2018.

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