Headline Inflation

The headline inflation in Iloilo accelerated to 5.4 percent in January 2025 from 4.2 percent in December 2024. This was the highest inflation rate since August 2024 when the monthly inflation rate was recorded at 5.6 percent. Further, it increased from the 1.2 percent inflation rate in the same month of the previous year.

Moreover, the headline inflation rate of Iloilo was higher than the regional inflation rate of Western Visayas which was at 3.6 percent, and the country’s 2.9 percent in January 2025.

Main Drivers to the Uptrend of the Headline Inflation

The increase in the headline inflation of Iloilo in January 2025 was primarily influenced by the faster year-on-year increase in prices of Food and Non-Alcoholic Beverages with a current inflation rate of 5.6 percent from 3.0 percent in the previous month. Transport also contributed with a 7.0 percent inflation rate, up from 6.2 percent. Restaurants and Accommodation Services also drove the overall inflation higher which was at 2.1 percent from 1.4 percent. Other contributors were as follows:

a.    Clothing and Footwear, 3.3 percent from 2.9 percent;
b.    Personal Care, and Miscellaneous Goods and Services, 3.0 percent from 2.9 percent; and
c.    Furnishings, Household Equipment, and Routine Household Maintenance, 7.6 percent from 7.5 percent.

In contrast, slower annual price increments were registered in the following commodity groups:

a.    Alcoholic Beverages and Tobacco, 5.3 percent from 5.4 percent;
b.    Housing, Water, Electricity, Gas and Other Fuels, 7.4 percent from 8.2 percent;
c.    Health, 1.6 percent from 1.9 percent;
d.    Information and Communication, 0.1 percent from 0.2 percent; and
e.    Recreation, Sport and Culture, 3.2 percent from 3.3 percent; 
 

Meanwhile, the following commodity groups retained their inflation rates from the previous month:

a.    Education Services, 2.6 percent; and
b.    Financial Services, 0.0 percent
 

Main Contributors to the Headline Inflation

The top three commodity groups that contributed to the January 2025 headline inflation in Iloilo were the following:

a.    Food and Non-Alcoholic Beverages, 44.8 percent share or 2.4 percentage points;
b.    Housing, Water, Electricity, Gas and Other Fuels, 25.8 percent share or 1.4 percentage points; and
c.    Transport, 12.6 percent share or 0.7 percentage points.
 

Food Inflation

Iloilo’s food inflation in January 2025 increased to 5.8 percent from 3.1 percent in the previous month. It was higher than the 3.8 percent food inflation in the province in January 2024.

Main Drivers to the Uptrend of the Food Inflation

The incline in the January 2025 food inflation in Iloilo was largely affected by the faster year-on-year price increments of  Fish and other seafood with an inflation rate of 4.8 percent from 0.2 percent in the previous month. Likewise, Cereals and cereal products and Meat and other parts of slaughtered land animals also contributed to the upward movement of the food inflation in the province. The inflation rate of Cereals and cereal products increased to 4.8 percent from 3.1 percent, and Meat and other parts of slaughtered land animals rose to 9.5 percent from 5.0 percent. Other contributors to the increase were Vegetables, tubers, plantains, cooking bananas and pulses with 10.6 percent from 5.1 percent, Ready-made food and other food products with 5.9 percent from 5.1 percent, Sugar, confectionery and desserts with -1.2 percent from -1.8 percent, and Oils and fats with -0.5 percent from -1.1 percent.

Conversely, slower annual increase in prices were observed in Milk, other dairy products and eggs (3.2 percent from 3.3 percent), and Fruits and nuts (6.9 percent from 8.2 percent). 

Main Contributors to the Food Inflation

The top three food groups with the biggest share to the January 2025 food inflation in the City were the following:

a.    Cereals and cereal products, 33.7 percent share or 2.0 percentage points.
b.    Meat and other parts of slaughtered land animals, 22.9 percent share or 1.3 percentage points.
c.    Vegetables, tubers, plantains, cooking bananas and pulses, 15.2 percent share or 0.9 percentage points.
 

Core Inflation

Core inflation, which excludes selected food and energy items, had the same annual increments in January 2025 and December 2024 with 3.7 percent inflation rate However, it was higher than the 3.2 core inflation rate in January 2024.

Originally Signed
JERRY L. DOLUTAN
(Supervising Statistical Specialist)    
Officer-in-Charge
PSA RSSO VI - Iloilo