I. Year-on-Year Inflation

In June 2025, the province of Aklan recorded a headline inflation rate of -1.8 percent, indicating that, on average, prices of goods and services were lower compared to June 2024. This represents a significant decrease of 8.0 percentage points from the 6.2 percent inflation rate in June 2024. Also, faster negative inflation was observed compared to last month with -0.7 percent, showing a 1.1 percentage point decrease and the lowest inflation rate since January 2019.

Moreover, prices of goods and services in the province increased at a slower pace compared to the national and regional inflation rates, which stood at 1.4 percent and 0.6 percent, respectively. 

Table 1.  Year-on-Year Inflation Rates, All Items
In percent
(2018=100)

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index, Philippine Statistics Authority

Table 2.  Year-on-Year Inflation Rates by Month: Aklan, January 2019 to June 2025

Among provinces and highly-urbanized cities in Western Visayas, Aklan posted 2^nd lowest inflation rate next to Antique with -2.2 percent inflation. This further implies that living costs in Aklan were rising slower than other provinces and highly-urbanized cities in Western Visayas in June 2025.

Top contributors to downtrend of inflation

Two (2) major commodity groups exhibited lower inflation rates, four (4) also showed increase while seven (7) showed constant movement of prices from May to June 2025. Housing, water, electricity, gas and other fuels contributed the highest in the inflation decrease this month, having 70.5 percent share to inflation downtrend. It registered an inflation of -2.8 percent in June 2025 from 1.3 percent inflation in the previous month. (See Figure 3)

Food and non-alcoholic beverages, followed, that displayed an increase in inflation from -3.6 percent in the previous month to -4.4 percent in June 2025. It contributed 29.5 percent to the inflation uptrend. (See Figure 3)

Other major commodities that showed stable inflation rate from May to June were:

a.    Clothing and footwear, with 0.8 percent inflation; 
b.    Furnishings, household equipment and routine household maintenance, with 1.4 percent inflation;
c.    Health, with 0.3 percent inflation; and
d.    Restaurants and accommodation services, with 6.6 percent inflation. (See Figure 3).

Meanwhile, Information and Communication, Financial Services and Personal care, and miscellaneous goods and services recorded stable yet zero percent inflation since January 2025: Zero percent inflation implies that these commodities have shown no price changes compared to 2024. (See Figure 3)

On the contrary, Alcoholic beverages and tobacco (4.7%), Transport (-1.2%), Recreation and culture (2.5%), and Education Services (7.4%) showed faster price movement this month compared last month. (See Figure 3)

Figure 3.  Inflation rates for All Income Households by Major Commodities: Aklan, May to June 2025 

Major Contributors to Inflation

Generally, inflation means that prices of goods and services increase over time. In June 2025, prices of goods and services still went up, however, at a lower level than June 2024 and last month.

The overall inflation of Aklan was majorly contributed by price hike of Food and non-alcoholic beverages which recorded -4.4 percent inflation with 105.7 percent share to overall inflation. This was followed by Housing, water, electricity, gas and other fuels with -2.8 percent inflation and 29.7 percent share to inflation. Following this, Transport contributed 6.2 percent to the overall inflation having -1.2 percent inflation in June 2025. (See Table 3)

II. Purchasing Power of Peso

The purchasing power of peso (PPP) is inversely associated with inflation, which implies that as inflation increases, the purchasing power of peso decreases and vice versa.

The Purchasing Power of the Peso (PPP) in June 2025 stood at 81 centavos, slightly higher than the 79 centavos recorded in June 2024, but remained unchanged compared to PPP in the previous month.

The purchasing power of peso to buy the same group of products and services lowered to 81% of its power to buy in 2018 because of inflation. On the average, Aklanons need P1,235.00 to buy the same set of goods and services that cost P1,000.00 in 2018.

Nonetheless, prices of goods and services in June 2025 became more affordable compared to their prices in June 2024. A 1000-peso set of goods and services in June 2024 cost P981.72 or P18.28 less in June 2025.

Meanwhile, food became more affordable for Aklanons in June 2025 compared to the same month last year. A household that spent ₱1,000 on food in June 2024 spent ₱952.20 in June 2025—₱47.80 less. Rice prices also showed significant deflation: rice that cost ₱50 per kilo in June 2024 averaged only to ₱38.48 per kilo in June 2025.

Table 5.  Consumer Price Index by Subgroup, Month-on-Month and Year-on-Year Percent Changes in Aklan (2018=100)

Source: Philippine Statistics Authority, Retail Price Survey on the Generation of Consumer Price Index

EXPLANATORY TEXT

Consumer Price Index (CPI) - is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by the households 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. 

The CPI Report was derived from the results of the 2018-based CPI survey comprised of thirteen (13) major commodity groups. These are the following: Food and Non-alcoholic Beverages; Alcoholic Beverages and Tobacco; Clothing and Footwear; Housing, Water, Electricity, Gas and Other Fuels; Furnishings, Household Equipment and Routine Maintenance of the House; Health; Transport; Information and Communication Services; Recreation, Sport and Culture; Education; Restaurants and Accommodation Services; Financial Services; and Personal Care and Miscellaneous Goods and Services.

Inflation rate is defined as the annual rate of change or the year-on-year change in the CPI. 

Purchasing power of peso is a measure of the real value of the peso in a given period relative to a chosen reference period. 

Market basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household. 

Base period or Base Year is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. In this report, 2018 is used as the base period.

ENGR. ANTONET B. CATUBUAN
Chief Statistical Specialist