Headline Inflation

Oriental Mindoro’s headline inflation or overall inflation slowed down further to 1.6 percent in May 2025 from 2.7 percent in April 2025. This decline brings the provincial average inflation rate from January to May 2025 to 2.8 percent. In May 2024, inflation was higher at 3.1 percent. (Tables 1, 2, and Figure 1)

Main Drivers of the Downward Trend of the Headline Inflation

The downtrend in overall inflation in May 2025 was primarily driven by the slower annual increase in the index of housing, water, electricity, gas, and other fuels, at 2.3 percent in May 2025, down from 5.1 percent in the previous month.

Also contributing to the downtrend was the food and non-alcoholic beverages sector, which decreased from 3.2 percent in April 2025 to 2.5 percent during the month. In addition, restaurants and accommodation services index recorded a slower annual growth of 1.6 percent during the month from 3.2 percent in April 2025.

Moreover, a faster annual decline was recorded in the transport index at 4.2 percent in May 2025 from a 4.0 percent annual drop in the previous month. Alcoholic beverages and tobacco index also recorded a slower annual growth of 4.4 percent during the month, from 5.2 percent in April 2025.

On the contrary, higher inflation rates were observed in the following commodity groups during the month:

a. Furnishing, household equipment, and routine household maintenance, 1.3 percent from 0.2 percent;
b. Health, 2.4 percent from 2.1 percent; and
c. Recreation, sport, and culture, 2.1 percent from 1.8 percent.

The indices of the rest of the commodity groups retained their respective previous month’s annual growth rates, with financial services still registering a zero percent annual rate in May 2025. (Figure 2)

Main Contributors to the May 2025 Headline Inflation

The top three commodity groups contributing to the May 2025 overall inflation of 1.6 percent of the province were the following:

a. Food and non-alcoholic beverages with 60.0 percent share or 0.96 percentage point;
b. Housing, water, electricity, gas and other fuels with 30.2 percentage share or 0.48 percentage point; and
c. Alcoholic beverages and tobacco, 10.0 percent share or 0.16 percentage point.

Food Inflation

Food inflation in Oriental Mindoro decelerated to 2.3 percent in May 2025, down from 3.1 percent in the previous month. In May 2024, food inflation was lower at 1.9 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in May 2025 was primarily brought about by the faster annual decline in the index of fish and other seafood, which fell by 0.6 percent in May 2025 from a 2.5 percent increment in April 2025. This was followed by a faster year-on-year decline in the rice index at 11.0 percent during the month from a 10.4 percent annual decrease in April 2025.

Moreover, lower annual rates were observed during the month in the following indices:

a. Flour, bread and other bakery products, pasta products, and other cereals, 1.0 percent from 1.2 percent;
b. Meat and other parts of slaughtered land animals, 15.7 percent from 16.8 percent;
c. Fruits and nuts, 10.9 percent from 12.4 percent; and
d. Ready-made food and other food products n.e.c., 2.9 percent from 3.9 percent.

INFLATION RATE BY FOOD GROUP

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

a. milk, other dairy products, and eggs, 3.0 percent from 2.5 percent;
b. oils and fats, 13.0 percent from 9.3 percent;
c. vegetables, tubers, plantains, cooking bananas, and pulses, 8.6 percent from 7.0 percent; and
d. sugar, confectionery and desserts, 0.7 percent from 0.6 percent.

The index of corn remained at 3.3 percent in May 2025. (Figure 3)

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro remained at Php 0.73 in May 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, as PPP and inflation typically share 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