Headline Inflation

Oriental Mindoro’s headline inflation or overall inflation eased to 3.7 percent in January 2025 from 4.9 percent in December 2024. Inflation in January 2024 was at 2.5 percent. (Tables 1, 2 and Figure 1)

Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in January 2025 was primarily brought about by the slower annual increment of food and non-alcoholic beverages at 4.8 percent in January 2025 from 7.3 percent in December 2024. Also contributing to the downtrend was restaurants and accommodation services with 1.5 percent in January 2025 from 4.3 percent in December 2024.

Lower annual increments were also noted in the indices of health with 1.2 percent in January 2025 from 3.1 percent in December 2024, and housing, water, electricity, gas and other fuels with 4.7 percent during the month from 4.9 percent last month.

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

a. alcoholic beverages and tobacco, 5.8 percent from 5.7 percent;
b. clothing and footwear, 1.9 percent from 1.6 percent;
c. transport, 1.0 percent from 0.0 percent;
d. recreation, sport and culture, 3.0 percent from 2.8 percent;
e. financial services; 0.0 percent from -0.1 percent; and
f. personal care, and miscellaneous goods and services, 1.8 percent from 1.5 percent.

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

Main Contributors to the January 2025 Headline Inflation

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

a. Food and non-alcoholic beverages with 59.5 percent share or 2.20 percentage points;
b. Housing, water, electricity, gas and other fuels with 23.8 percentage share or 0.88 percentage point; and
c. Alcoholic beverages and tobacco, 3.5 percent share or 0.13 percentage point.

Food Inflation

Food inflation in Oriental Mindoro eased to 5.0 percent in January 2025 from 7.6 percent in the previous month. In January 2024, food inflation was lower at 1.7 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in January 2025 was primarily brought about by the slower inflation rate of meat and other parts of slaughtered land animals with 24.8 percent in January 2025 from 33.1 percent in December 2024. This was followed by rice with an annual decline of 5.4 percent during the month from 1.5 percent decrease in December 2024, and slower inflation rate of fruits and nuts with 6.1 percent in January 2025 from 10.4 percent in December 2024.

INFLATION RATE BY FOOD GROUP

Moreover, lower annual growth rates during the month were noted in the following food groups:

a. Corn, 1.9 percent from 4.1 percent;
b. Fish and other seafood, 0.3 percent from 1.2 percent;
c. Sugar, confectionery and desserts, -2.5 percent from -2.3 percent; and
d. Ready-made food and other food products n.e.c., 3.4 percent from 4.5 percent.

In contrast, the following food groups registered higher annual growth rates during the month:

a. Milk, other dairy products and eggs, 2.5 percent from 2.1 percent;
b. Oils and fats, 6.7 percent from 2.9 percent; and
c. Vegetables, tubers, plantains, cooking bananas and pulses, 7.5 percent from 6.7 percent.

Flour, bread and other bakery products, pasta products, and other cereals retained its index at 2.4 percent. (Figure 3)

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro is at Php 0.72 in January 2025. The PPP was registered at Php 0.74 in January 2024.

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