Inflation Rate for Central Luzon’s Bottom 30% Income Households Declines Further to 0.4 Percent

Central Luzon’s inflation rate for the bottom 30 percent income households further declined to 0.4 percent in April 2025, from 1.7 percent in March 2025. This reflects a decrease of 1.3 percentage points from the previous month and a 5.9 percentage points compared to that in April 2024. (Figure 1)

Central Luzon ranked ninth among regions with the highest inflation rate for bottom 30 percent income households in April 2025. National Capital Region (NCR) recorded the highest inflation rate at 2.4 percent, followed by CALABARZON and Ilocos Region at 1.7 percent and 1.6 percent, respectively. Meanwhile, SOCCSKSARGEN recorded the lowest inflation rate at -2.5 percent. (Figure 2) 

Furthermore, the headline inflation for bottom 30 percent income households in the Philippines also decreased from 1.1 percent in March 2025 to 0.1 percent in April 2025.

Figure 2 shows the annual inflation rates of the different regions in the Philippines in April 2025.

Main Drivers to the Downward Trend of the April 2025 Inflation in Central Luzon

The overall inflation rate in April 2025 declined primarily due to the slower year-on-year growth rates in several major commodity groups. Notably, the index for food and non-alcoholic beverages dropped from 1.9 percent in March 2025 to 0.1 percent in April 2025. Similarly, the index for housing, water, electricity, gas, and other fuels decreased further from 0.4 percent to -0.6 percent. In addition, the sustained deceleration in the transport index also contributed to the downtrend, recording a slower decline of -2.0 percent in April 2025 compared to -0.9 percent in the previous month. (Table 1)

Additionally, slower increments were also recorded in the following indices: 
•    clothing and footwear at 1.2 percent from 1.3 percent;
•    furnishings, household equipment and routine household maintenance at 1.8 percent from 1.9 percent;
•    restaurants and accommodation services at 0.7 percent from 1.3 percent; and
•    personal care and miscellaneous goods and services at 2.9 percent from 3.0 percent.

On the other hand, faster annual increments were recorded in the following indices:
•    alcoholic beverages and tobacco at 5.5 percent from 5.2 percent; and
•    information and communication at 0.4 percent from 0.3 percent.

Meanwhile, the indices of health (1.7%), recreation, sport and culture (4.0%), education services (3.3), and financial services (0.0) maintained their previous month’s inflation rate.

Main Contributor to the April 2025 Overall Inflation in Central Luzon

The following commodity groups were the top three contributors to the April 2025 overall inflation for the bottom 30% income households:
•    alcoholic beverages and tobacco with 67.3 percent share or 0.27 percentage point;
•    personal care, and miscellaneous with 31.3 percent share or 0.13 percentage point; and
•    restaurants and accommodation services with 15.2 percent share or 0.06 percentage point.

Food Inflation
The inflation rate in the regional food index decelerated to -0.1 percent in April 2025 from 1.9 percent in March 2025. 

Main Drivers to the Downward Trend of the April 2025 Food Inflation in Central Luzon
The deceleration of food inflation in April 2025 was mainly attributed to the slower year-on-year growth in several food commodity groups. These include cereals and cereal products, which posted a further decline at -10.7 percent from -7.8 percent in March 2025, vegetables, tubers, plantains, cooking bananas, and pulses, which recorded 0.0 percent from 6.2 percent, and meat and other parts of slaughtered land animals, which decreased to 8.0 percent from 10.3 percent in March 2025. (Table 2)

Additionally, slower increments were also recorded in the following indices: 
•    fish and other seafood at 8.0 percent from 8.2 percent;
•    fruits and nuts at 7.5 percent from 8.1 percent;
•    sugar, confectionery and desserts at -0.8 percent from -0.6 percent; and
•    ready-made food and other food products N.E.C at 4.4 percent from 4.9 percent.

On the other hand, faster annual increments were recorded in the following indices:
•    flour, bread, and other bakery products, pasta products, and other cereals at 1.5 percent from 1.3 percent;
•    milk, other dairy products and eggs at 7.1 percent from 6.3 percent; and
•    oils and fats at 7.8 percent from 7.4 percent;

Relative to the April 2025 inflation rates for the bottom 30 percent income households, all provinces and Highly Urbanized Cities (HUCs) in the region recorded lower inflation rates compared to their respective previous months’ inflation rates, except for the City of Olongapo, which recorded an increase to 2.1 percent from 2.0 percent in March 2025, and Bulacan, which retained its inflation rate at 2.4 percent in April 2025.

Among the provinces and HUCs in the region, Bulacan registered the highest inflation rate for the bottom 30 percent income households at 2.4 percent, followed by Pampanga at 2.3 percent. In contrast, Nueva Ecija recorded the lowest inflation rate at -1.9 percent. Furthermore, Nueva Ecija recorded the highest decrease in inflation rate compared with the previous month’s inflation of 0.5 percent posting a 2.4 percentage points difference followed by Pampanga with 1.8 percentage points difference from the inflation in March 2025 at 4.1 percent. (Figure 3)

ARLENE M. DIVINO
Regional Director 
PSA RSSO 03