I.    Year-on-Year Inflation

In May 2025, the province of Aklan recorded a headline inflation rate of negative 0.7 percent, indicating that, on average, prices of goods and services were lower compared to May 2024. This represents a significant decrease of 5.2 percentage points from the 4.5 percent inflation rate in May 2024. However, it is a slower rate of deflation compared to April 2025, when the inflation rate was negative 1.2 percent, showing a 0.5 percentage point increase. 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 1.3 percent and 1.5 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 May 2025

Among provinces and highly-urbanized cities in Western Visayas, Aklan posted 2^nd lowest inflation rate next to Antique with -1.3 percent inflation. This further implies that living costs in Aklan were rising slower than other provinces and highly-urbanized cities in Western Visayas in May 2025.

Top contributors to uptrend of inflation

Two (2) major commodity groups exhibited faster inflation rates, two (2) also showed slower increase while nine (9) showed constant movement of prices from April to May 2025. Food and Non-Alcoholic Beverages contributed the highest in the inflation uptrend this month, having 51.8 percent share to inflation upptrend. It registered an inflation of -3.6 percent in May 2025 from -4.2 percent inflation in the previous month. (See Figure 3)

Housing, water, electricity, gas and other fuels, followed, that displayed an increase in inflation from 0.1 percent in the previous month to 1.3 percent in May 2025. It contributed 48.2 percent to the inflation uptrend. (See Figure 3)

Other major commodities that showed stable inflation rate from April to May 2025 were:
a.    Alcoholic beverages and tobacco, with 4.2 percent inflation;
b.    Clothing and footwear, with 0.8 percent inflation; 
c.    Furnishings, household equipment and routine household maintenance, with 1.4 percent inflation;
d.    Health, with 0.3 percent inflation;
e.    Recreation, sport and culture, with 2.3 percent inflation; and
f.    Restaurants and accommodation services, with 6.6 percent inflation. (See Figure 3).

Meanwhile, Information and Communication, Financial Services and Education 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, Transport and Personal care and miscellaneous goods and services showed slower price movement this month compared last month, with -1.5 percent and 0 percent inflation, respectively.

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

Major Contributors to Inflation

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

The overall inflation of Aklan was majorly contributed by price hike of Food and non-alcoholic beverages which recorded -3.6 percent inflation with 201.2 percent share to overall inflation. This was followed by Transport with -1.5 percent inflation and 17.8 percent share to inflation. (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 May 2025 stood at 81 centavos, slightly higher than the 80 centavos recorded in May 2024, but remained unchanged compared to PPP in the previous month.

The PPP tells that due to inflation in May 2025, the purchasing power of peso to buy the same group of products and services lowered to 81% of its power to buy in 2018. On the average, Aklanons need P1,234.00 to buy the same set of goods and services that cost P1,000.00 in 2018.

Nonetheless, prices of goods and services in May 2025 became more affordable compared to their prices in May 2024. A 1000-peso set of goods and services in May 2024 only cost P992.76 or P7.24 less in May 2025.

Meanwhile, food became more affordable for Aklanons in May 2025 compared to the same month last year. A household that spent ₱1,000 on food in May 2024 spent ₱960.59 in May 2025—₱39.41 less. Rice prices showed significant deflation: rice that cost ₱50 per kilo in May 2024 averaged only to ₱48.21 per kilo in May 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