Headline Inflation

Oriental Mindoro’s headline inflation or overall inflation eased to 3.4 percent in February 2025 from 3.7 percent in January 2025. Inflation in February 2024 was lower at 2.1 percent. (Tables 1, 2 and Figure 1)

Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in February 2025 was primarily brought about by the slower annual increment of food and non-alcoholic beverages at 4.2 percent in February 2025 from 4.8 percent in the previous month. Also contributing to the downtrend was transport with an annual decline of 0.7 percent during the month from 1.0 percent in January 2025. In addition, clothing and footwear recorded a slower annual increase of 1.6 percent in February 2025 from 1.9 percent in the previous month.

Moreover, lower annual increments were noted in the indices of alcoholic beverages and tobacco with 5.5 percent in February 2025 from 5.8 percent in the previous month, and information and communication with 2.4 percent in February 2025 from 2.5 percent in January 2025.

On the contrary, the indices of the following commodity groups were higher during the month:

a. housing, water, electricity, gas and other fuels, 5.2 percent from 4.7 percent;
b. furnishings, household equipment and routine household maintenance, 0.6 percent from 0.4 percent;
c. health, 1.4 percent from 1.2 percent; and
d. recreation, sport and culture, 3.5 percent from 3.0 percent.

The indices of the rest of the commodity groups retained their respective previous month’s inflation rates in February 2025. (Figure 2)

Main Contributors to the February 2025 Headline Inflation

The top three commodity groups contributing to the February 2025 overall inflation of the province were the following:

a. Food and non-alcoholic beverages with 57.4 percent share or 1.95 percentage points;
b. Housing, water, electricity, gas and other fuels with 29.0 percentage share or 0.99 percentage point; and
c. Alcoholic beverages and tobacco, 3.7 percent share or 0.12 percentage point.

Food Inflation

Food inflation in Oriental Mindoro eased to 4.3 percent in February 2025 from 5.0 percent in the previous month. In February 2024, food inflation was lower at 1.9 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in February 2025 was primarily brought about by the faster year-on-year decline of rice at 10.9 percent during the month from 5.4 percent annual decrease in January 2025. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with slower inflation rate at 5.8 percent during the month from 7.5 percent in January 2025.

INFLATION RATE BY FOOD GROUP

In addition, lower inflation rates during the month were noted in the indices of the following food items:

a. Flour, bread and other bakery products, pasta products, and other cereals, 1.8 percent from 2.4 percent;
b. Milk, other dairy products and eggs, 1.8 percent from 2.5 percent; and
c. Ready-made food and other food products n.e.c., 3.1 percent from 3.4 percent.

On the contrary, higher annual growth rates during the month were observed in the indices of the following food groups:

a. Corn, 3.3 percent from 1.9 percent;
b. Meat and other parts of slaughtered land animals, 27.6 percent from 24.8 percent;
c. Fish and other seafood, 1.1 percent from 0.3 percent;
d. Oils and fats, 8.4 percent from 6.7 percent;
e. Fruits and nuts, 8.7 percent from 6.1 percent; and
f. Sugar, confectionery and desserts, -1.5 percent from -2.5 percent. (Figure 3)

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro remained at Php 0.72 in February 2025.

As a result, the amount of goods that could be presently purchased by consumers was less than when the PPP was higher. Furthermore, the decrease in PPP was attributed to the higher inflation rate, given that PPP and inflation rate have an inverse relationship.

(SGD) CHARLYN ROMERO-CANTOS, PhD
(Chief Administrative Officer)
Officer-in-Charge
Oriental Mindoro Provincial Statistical Office

HTD/JGO

TECHNICAL NOTES

Consumer Price Index is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Market Basket is a sample of goods and services, which is meant to represent the totality of all the goods and services purchased by households relative to a base year.

• To determine the commodities that will form the market basket for the 2018-based CPI, the Survey of Key Informants (SKI) was conducted in March 2021. The survey, which was conducted nationwide to store managers, sellers or proprietors, obtained information on the most commonly purchased of goods and availed of services by the households.

• Base year is a reference period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. The CPI is rebased from base year 2012 to base year 2018.

• Inflation Rate is the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).

• Purchasing Power of Peso is a measure of the real value of the peso in a given period relative to  chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100