The headline inflation rate in Butuan City declines to 1.6 percent in April 2025.

The city’s inflation rate for all income household slowed down to 1.6 percent in April 2025 from 1.9 percent in the previous month. This brings the average inflation rate from January to April 2025 to 1.2 percent. In April 2024, the inflation rate was posted lower at 1.4 percent. (Figure 1, Table A and B)

Major Contributor to the April 2025 Inflation

Among the 13 commodity groups, the main driver of the overall inflation in April 2025 was the higher year-on-year growth rate in housing, water, electricity, gas and other fuels at 6.3 percent from 4.1 percent in the previous month. Additionally, this commodity group recorded a lower inflation rate of -10.1 percent in April 2024. Its contribution to the overall inflation in April 2025 accounted for 59.2 percent of the total share.

This was followed by the heavily weighted food and non-alcoholic beverages group, which recorded an inflation rate of 0.9 percent from 1.5 percent in the March 2025. This group posted a 5.5 percent inflation rate in April 2024, which was higher than the current month. It contributed a 25.3 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 lower year-on-year growth rate in the indices of transport group contributed to the downward trend in inflation in April 2025, with an inflation rate of -4.4 percent from -1.6 percent in the previous month. This commodity group accounted for 50.8 percent share of the city’s overall inflation. Moreover, lower annual growth rates were reported in the indices of food and non-alcoholic beverages at 0.9 percent from 1.5 percent in the previous month, contributing 47.1 percent of the total share in Butuan City.

Inflation Rate by Commodity Group
 

Food Alone Inflation

In April 2025, the overall food inflation at the Highly Urbanized City (HUC) level slowed down to 0.9 percent from 1.5 percent in March 2025. In April 2024, food inflation was observed at a higher rate of 5.8 percent. The food groups contributing to the downtrend inflation in the food category are as follows:

1)    Cereals and cereal products (ND) posted a decline of inflation rate of -8.6 percent in the current month, from -7.0 percent in the previous month. The main contributor to the downtrend of this was the slow growth rate of rice index, at -11.9 percent from -9.7 percent in the previous month. Cereals and cereal products contributed 47.4 percent share to the overall food inflation of the city.

2)    Fish and other seafood (ND) ranked second with 8.1 percent in April 2025 from 10.8 percent in the previous month. This food category accounted for a substantial 36.4 percent share of the overall food inflation trend.

3)    Ready-made food and other food products n.e.c. (ND) experienced a notable decline in inflation, ranking third with 0.9 percent in April 2025, from 3.4 percent in March 2025. This food group contributed 8.0 percent to the overall food inflation trend for April 2025.

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

The Purchasing Power of the Peso (PPP) in Butuan City has remained constant at Php 0.80 in April 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 April 2025. Consequently, it now requires Php125.2 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