The headline inflation rate in Butuan City remained steady at 1.6 percent in May 2025.

The headline inflation in Butuan City for all income household remains at steady rate of 1.6 percent in May 2025. This brings the average inflation rate from January to May 2025 to 1.2 percent. percent. In May 2024, the inflation rate was higher at 1.9 percent. (Figure 1, Table A and B)

Major Contributor to the May 2025 Inflation

Among the 13 commodity groups, the main driver of the overall inflation in May 2025 was the higher year-on-year growth rate in housing, water, electricity, gas and other fuels at 5.4 percent from 6.3 percent in the previous month. Additionally, this commodity group recorded a lower inflation rate of -6.1 percent in May 2024. Its contribution to the overall inflation in May 2025 accounted for 51.0 percent of the total share.

This was followed by the heavily weighted food and non-alcoholic beverages group, which recorded an inflation rate of 1.1 percent from 0.9 percent in the April 2025. This group posted a 5.3 percent inflation rate in May 2024, which was higher than the current month. It contributed a 28.4 percent share to the overall inflation rate of Butuan City in May 2025.

Major Contributor to the Year-on-Year Inflation Trend

Inflation in Butuan City was observed at 1.6 percent in May 2025, the same annual rate recorded in April 2025. In May 2024, inflation rate in the area was higher at 1.9 percent.

The following commodity groups registered higher inflation rates in the city during the month:

a. Food and Non-Alcoholic Beverages, 1.1 percent from 0.9 percent;
b. Clothing and Footwear, 3.9 percent from 3.6 percent;
c. Furnishings, household equipment and routine household maintenance, 
  1.8 percent from 1.1 percent;
d. Transport, -3.9 percent from -4.4 percent; 
e. Information and Communication, 0.3 percent from 0.0 percent; and
f.  Personal care, and miscellaneous goods and services, 1.6 percent                           
   from 1.4 percent.

On the contrary, lower annual rates were observed during the month in the indices of housing, water, electricity, gas and other fuels at 5.4 percent from 6.3 percent. Declines were also noted in the indices of health and recreation, sport and culture at 1.2 percent and 7.1 from 1.7 percent and 7.5 percent, respectively.
The commodity groups for alcoholic beverages and tobacco, education services, and restaurants and accommodation services remained at their respective inflation rates from the previous month, while financial services continued to register a zero percent inflation rate in May 2025.

Inflation Rate by Commodity Group

Food Alone Inflation

In May 2025, the overall food inflation at the Highly Urbanized City (HUC) level increase to 1.0 percent from 0.9 percent in April 2025. In May 2024, food inflation was observed at a higher rate of 5.5 percent. The food groups contributing to the upward trend inflation in the food category were as follows:

1)    Meat and other parts of slaughtered land animals (ND) mainly influenced the upward trend of inflation in May 2025 at 5.7 percent from 4.8 percent in the previous month. This food group contributed 47.2 percent share to the overall food inflation of the city.

2)    Milk, other dairy products and eggs (ND) registered a higher inflation rate in Butuan City’s overall food inflation, increasing to 4.5 percent in May 2025, from 3.1 percent in April 2025. This category contributed 35.7 percent share to the total food inflation.

3)    Cereals and cereal products (ND) also recorded an inflation rate of -8.5 percent in May 2025, from -8.6 percent in April 2025, and contributed 10.7 percent to the overall food inflation trend in Butuan City.

The Purchasing Power of the Peso (PPP) in Butuan City has remained constant at Php 0.80 in May 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 Php125.6 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