The headline inflation rate in Butuan City declines to 0.0 percent in January 2025.

In January 2025, Butuan City's inflation rate slowed down to 0.0 percent from 0.3 percent in December 2024. This brought the average inflation rate from January 2024 to January 2025 to 0.0 percent. In comparison, the inflation rate in January 2024 was higher at 2.6 percent. (Figure 1, Table A and B)

Major Contributor to the January 2025 Inflation

Among the 13 commodity groups, the main driver to the downward trend of the overall inflation in January 2025 was mainly brought about by the heavily weighted food and non-alcoholic beverages at -1.0 percent from 0.2 percent in the previous month. Additionally, this commodity group also recorded a higher inflation rate of 5.8 percent in January 2024. This was followed by personal care, and miscellaneous goods and services recorded this month at 1.6 percent from 1.8 percent in December 2024. 

Major Contributor to the Year-on-Year Inflation Trend

Among the 13 commodity groups, the main driver to the downtrend of the overall inflation in January 2025 are the following:

1)    Food and non-alcoholic beverages experienced a decrease in prices, particularly for cereals and cereals products, causing the inflation rate to decline at -1.0 percent inflation in January 2025 from 0.2 percent inflation in December 2024. This group constituted 97.7 percent share of the overall inflation of the province.

2)    Personal care, and miscellaneous goods and services ranked second in terms of its influence on the downward inflation trend, with 1.6 percent inflation in January 2025 from 1.8 percent inflation in the previous month. This commodity group contributed 1.4 percent share of the overall inflation.

3)    Recreation, sport and culture secured the third position, with its inflation rate of 3.8 percent in January 2025, from 4.3 percent in the previous month, contributed to the overall inflation in Butuan City at 0.9 percent share.

Food Alone Inflation

In January 2025, the overall food inflation at the Highly Urbanized City (HUC) level slowed down to -1.1 percent in January 2025, from 0.2 percent in December 2024. In January 2024, food inflation was observed at a higher rate of 6.1 percent. The food groups contributing to the downtrend inflation in the food category are as follows:

1)    Cereals and cereals product (ND) posted a decline of inflation rate of -7.3 percent in the current month, from -3.6 percent in the previous month. The main contributor to the downtrend of this was the slow growth of rice index, at -10.2 percent from -6.0 percent in the previous month. Cereals and cereals product contributed 70.8 percent share to the overall food inflation of the province.

2)    Fish and other seafood (ND) secured the second position in the ranking with -2.7 percent in January 2025 from 0.1 percent in the previous month. This food category accounted for a substantial 24.4 percent share of the overall food inflation trend.

3)    Milk, other dairy products and eggs (ND) experienced a notable decline in inflation, ranking third with 4.8 percent in January 2025, down from 5.2 percent in December 2024. This food group contributed 1.8 percent to the overall food inflation trend for January 2025.

The Purchasing Power of the Peso (PPP) in Butuan City has remained constant at Php 0.81 in January 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 81 centavos in January 2025. Consequently, it now requires Php124.1 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