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Release Date :
Reference Number :
WPR-2025-313

 

 

 

A.    Caraga

1.    Headline Inflation

Headline Inflation in Caraga Slows to 0.4 Percent in June 2025

The headline inflation rate for all income households in the Caraga region eased to 0.4 percent in June 2025. This is significantly lower than the 3.3 percent recorded in the same month last year, indicating a 2.9 percentage point decline in the inflation rate. (Refer to Table A, Table B, and Figure 1 for more details.)

Among the 13 commodity groups, Housing, Water, Electricity, Gas and other Fuels emerged as the main contributor to the overall inflation in June 2025. This group recorded an inflation rate of 2.7 percent for the month, which is lower than the 3.8 percent posted in the previous month. Despite the slowdown, it accounted for a substantial 115.6 percent share of the overall inflation, highlighting its strong influence on the region’s inflation trend.

The key contributors to the overall inflation within the Housing, Water, Electricity, Gas and other Fuels group were the actual rentals paid by tenants, electricity, and water supply with an inflation rate posted at 3.3 percent, 1.3 percent and 7.9 percent, respectively.

The second-largest contributor to this month’s inflation was the Alcoholic Beverages and Tobacco group, which registered an inflation rate of 6.6 percent, accounting for approximately 46.9 percent of the overall inflation rate. The increase in the average prices of tobacco, beer and rum drove the inflation in this group.

The third commodity group was Restaurants and Accommodation Services, which posted an inflation rate of 2.8 percent, contributing about 37.4 percent to the overall inflation rate. The main driver of inflation in this group was the restaurants and cafés sub-sector.

 

 

Commodity groups that showed an increased inflation include:

A.    Alcoholic Beverages and Tobacco: 6.6 percent from 6.2 percent in the previous month;
B.    Clothing and Footwear: 3.1 percent from 2.4 percent;
C.    Furnishings, Household Equipment and Routine Household Maintenance: 2.0 percent from 1.8 percent;
D.    Health: 3.9 percent from 3.5 percent;
E.    Recreation, Sport and Culture: 4.0 percent from 3.7 percent;
F.    Education Services: 2.0 percent from 1.9 percent; and
G.    Restaurants and Accommodation Services: 2.8 percent from 2.2 percent.

Meanwhile, slower inflation rate was observed in the Housing, Water, Electricity, Gas and Other Fuels group, which posted an inflation rate of 2.7 percent in June 2025, down from 3.8 percent in the previous month.

On the other hand, the Transport commodity group recorded a slower decline in prices in June 2025, with an inflation rate of -1.9 percent, slightly higher compared to -2.8 percent in May 2025.

In contrast, the Food and Non-Alcoholic Beverages group recorded a faster decline in prices in June 2025, with an inflation rate of -1.4 percent, compared to -0.9 percent in the previous month. The main reason for the decline in inflation for this commodity group was the significant drop in rice prices, which carries a large weight in consumers’ overall food expenses.

Commodity groups that exhibited consistent rates were noted in the following:

A.    Information and Communication, at 0.8 percent;
B.    Financial Services, at 0.0 percent; and
C.    Personal Care, and Miscellaneous Goods and Services, at 2.4 percent.

 

 

2.    Food Inflation

Regional Food Prices Further drop to -1.8 Percent in June 2025

Food inflation for all income households in the Caraga region further declined to -1.8 percent in June 2025, from -1.2 percent in May 2025. This marks a significant decrease compared to the 6.7 percent inflation rate recorded in the same month last year (June 2024), highlighting a substantial downward trend in regional food prices.

The decline in food inflation in Caraga for June 2025 was primarily attributed to substantial reductions in the inflation rates of key food categories, including:

A.    Cereals and cereal products:

The year-on-year growth rate for this category further declined to -14.2 percent in June 2025, down from -12.5 percent in the previous month. This decrease was primarily driven by the continued decline in rice prices, which dropped to -18.2 percent in June from -16.0 percent in May.
In addition, corn prices also fell further, recording a decline of -8.9 percent this month, compared to -8.2 percent in the previous month.

B.    Ready-made food and other food products n.e.c:

Inflation in this food group decreased to 0.3 percent in June 2025, down from 2.4 percent in May 2025. This reduction was primarily driven by a decrease in the prices of spices, culinary herbs and seeds, such as ginger.

C.    Fish and other seafood:

Inflation on this food group decrease at 3.4 percent in June 2025, down from 4.6 percent in the previous month. The decline was mainly driven by the slower year- on-year growth of certain fish, such as anchovies, which contributed to the overall reduction in inflation for this food group.

 

 

On the contrary, increased inflation was recorded during the month in the indices of the following food groups:

A.    Flour, Bread and other Bakery Products, Pasta Products and other Cereals, 2.1 percent from 1.7 percent;
B.    Milk, other dairy products and eggs, 8.6 percent from 7.7 percent;
C.    Oils and fats, 5.8 percent from 5.5 percent;
D.    Fruits and nuts, 11.9 percent from 9.9 percent; and
E.    Vegetables, tubers, plantains, cooking bananas and pulses, 3.8 percent from 1.3 percent.

B.    Provinces and Highly Urbanized City (HUC)

Based on the latest data, the headline inflation rates across provinces and highly urbanized areas in Caraga show mixed trends in June 2025, with three areas experiencing a rise in inflation and three areas recording a slowdown.

Areas with increasing inflation includes, Butuan City, Agusan del Sur and Dinagat Islands with an inflation rate at 2.4 percent, 1.0 percent and -0.7 percent, respectively. Moreover, Agusan del Norte, Surigao del Norte and Surigao del Sur experienced a decline in inflation at -0.8 percent, 0.2 percent and -0.5 percent, respectively.

Butuan City led the region in rising inflation trends, while Agusan del Norte recorded the sharpest decline. On the other hand, Dinagat Islands, despite experiencing deflation, showed signs of inflation recovery. (Refer to Table A.)


Note:
CPIs and inflation rates by province and selected city are posted on the PSA website (http://openstat.psa.gov.ph/).

 

(Sgd.)GUILLERMO M. LIPIO, JR.
(Chief Statistical Specialist) Officer-In-Charge
PSA RSSO XIII
 

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