Headline Inflation

Oriental Mindoro’s headline inflation or overall inflation increased to 2.4 percent in June 2025 from 1.6 percent in May 2025. This brings the provincial average inflation rate from January to June 2025 to 2.8 percent. In June 2024, inflation was higher at 3.3 percent. (Tables 1, 2 and Figure 1)

Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in June 2025 was primarily brought about by the higher year-on-year increase in the index of housing, water, electricity, gas and other fuels at 4.6 percent in June 2025 from 2.3 percent in the previous month. The slower annual decrease of transport at 3.0 percent in June 2025 from an annual decline of 4.2 percent in the previous month also contributed to the uptrend.

In addition, higher inflation rates were observed in the following commodity groups during the month:

a. Food and alcoholic beverages, 2.7 percent from 2.5 percent;
b. Alcoholic beverages and tobacco, 4.9 percent from 4.4 percent; and
c. Education services, 5.7 percent from 0.5 percent.

On the contrary, lower inflation rates were noted in the following commodity groups during the month:

a. Clothing and footwear, 1.7 percent from 1.8 percent;
b. Furnishings, household equipment and routine household maintenance, 1.2 percent from 1.3 percent;
c. Health, 2.3 percent from 2.4 percent;
d. Information and communication, -0.1 percent from 1.1 percent;
e. Recreation, sport and culture, 1.9 percent from 2.1 percent; and
f. Personal care, and miscellaneous goods and services, 1.2 percent from 1.4 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 June 2025. (Figure 2)

Main Contributors to the June 2025 Headline Inflation

The top three commodity groups contributing to the June 2025 overall inflation of 2.4 percent the province were the following:

a. Food and non-alcoholic beverages with 44.6 percent share or 1.07 percentage points;
b. Housing, water, electricity, gas and other fuels with 42.07 percentage share or 1.02 percentage points; and
c. Alcoholic beverages and tobacco, 7.7 percent share or 0.18 percentage point.

Food Inflation

Food inflation in Oriental Mindoro increased to 2.6 percent in June 2025 from 2.3 percent in the previous month. In June 2024, food inflation was lower at 1.9 percent.

Main Drivers to the Upward Trend of Food Inflation

The increase of food inflation in June 2025 was primarily brought about by the faster annual increase in the index of fish and other seafood at 3.8 percent in June 2025 from a 0.6 percent decrement in May 2025. This was followed by a faster year-on-year increment in the index of meat and other parts of slaughtered land animals at 18.4 percent during the month from a 15.7 percent annual increase in May 2025.

Moreover, higher annual rates were noted in the indices of the following food groups during the month:

a. Corn, 8.5 percent from 3.3 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 1.3 percent from 1.0 percent;
c. Milk, other dairy products and eggs, 3.7 percent from 3.0 percent;
d. Oils and fats, 14.2 percent from 13.0 percent; and
e. Fruits and nuts, 12.3 percent from 10.9 percent.

INFLATION RATE BY FOOD GROUP

In contrast, faster annual decline was noted in the index of rice at 13.8 percent from its year-on-year decrease of 11.0 percent in May 2025. Lower inflation rates were also noted in the indices of vegetables, tubers, plantains, cooking bananas and pulses at 2.2 percent and sugar, confectionery and desserts at 0.2 percent from their respective inflation rates of 8.6 percent and 0.7 percent in the previous month.
 

The index of ready-made food and food products n.e.c. remained at 2.9 percent in June 2025. (Figure 3)

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro decreased to Php 0.72 in June 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