Inflation Rate for Central Luzon’s Bottom 30 Percent Income Households Decreased to 1.9 Percent
 

Central Luzon’s inflation rate for the bottom 30 percent income households decreased to 1.9 percent in February 2025 from 3.3 percent in January 2025. This marks a 1.4 percentage points decrease from January 2025 and 4.2 percentage points decrease compared to the inflation rate recorded in February 2024. (Figure 1)

 

Central Luzon ranked seventh among regions with the highest inflation rate for bottom 30 percent income households in February 2025. Cagayan Valley recorded the highest inflation rate at 3.7 percent, followed by CALABARZON and National Capital Region (NCR) at 3.0 percent and 2.7 percent, respectively. Meanwhile, Davao Region recorded the lowest inflation rate at -1.5 percent. (Figure 2) 

Furthermore, the headline inflation for bottom 30 percent income households in the Philippines also decreased from 2.4 percent in January 2025 to 1.5 percent in February 2025.

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

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

The decrease in the overall inflation in February 2025 was primarily driven by slower year-on-year growth rates in several key indices. These included food and non-alcoholic beverages, which decreased from 3.6 percent in January 2025 to 1.6 percent in February 2025, and housing, water, electricity, gas and other fuels, which decreased from 3.8 percent to 2.1 percent. Also, what contributed to the downtrend of inflation was the slower decline of transport at 0.1 percent in February 2025 from 0.7 percent in the previous month. (Table 1)

Additionally, slower increments were also recorded in the following indices: 
•    clothing and footwear at 1.8 percent from 2.3 percent;
•    health at 1.7 percent from 2.0 percent;
•    information and communication at 0.2 percent from 0.3 percent;
•    restaurants and accommodation services at 2.8 percent from 3.1 percent; and
•    personal care and miscellaneous goods and services at 3.0 percent from 3.6 percent.

On the other hand, faster annual increments were recorded in the following indices:
•    alcoholic beverages and tobacco at 4.5 percent from 4.2 percent; and
•    education services at 3.3 percent from 2.8 percent.

Meanwhile, the indices of furnishings, household equipment and routine household maintenance and recreation, sports and culture, and financial services maintained their previous month’s inflation rate of 1.9 percent, 4.2 percent, and 0.0 percent, respectively. 
 

Main Contributor to the February 2025 Overall Inflation in Central Luzon

The following commodity groups were the top three contributors to the February 2025 overall inflation for the bottom 30% income households:
•    food and non-alcoholic beverages with 41.9 percent share or 0.8 percentage point;
•    housing, water, electricity, gas and other fuels with 16.9 percent share or 0.32 percentage point; and
•    restaurants and accommodation services with 16.4 percent share or 0.31 percentage point.

Food Inflation
The inflation rate in the regional food index decelerated to 1.5 percent in February 2025 from 3.7 percent in January 2025.

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

The deceleration of food inflation can be mainly attributed to the slower increment in the index of vegetables, tubers, plantains, cooking bananas and pulses at 9.4 percent in February 2025 from 36.2 percent in January 2025, 
ready-made food and other food products n.e.c. at 4.1 percent in February 2025 from 4.6 percent in January 2025, and fruits and nuts at 6.5 percent in February 2025 from 6.7 percent in January 2025.

In addition, faster deceleration was recorded in the index of cereals and cereal products at a faster annual decline of 7.1 percent in February 2025 from 5.0 percent annual decline in January 2025.

On the other hand, faster annual increments were registered in the following indices:
•    meat and other parts of slaughtered land animals at 10.3 percent from 7.0 percent;
•    fish and other seafood at 5.4 percent from 4.8 percent;
•    milk, other dairy products and eggs at 2.6 percent from 1.6 percent; and
•    oils and fats at 8.8 percent from 4.4 percent;

Meanwhile, slower deceleration was recorded in the index of sugar, confectionery and desserts at 0.9 percent in February 2025 from 1.6 percent annual decline in January 2025. (Table 2)
 

Relative to the January 2025 inflation rates for bottom 30 percent income households, all provinces including HUCs in the region exhibited lower inflation rates in February 2025 as compared to their respective previous month’s inflation.

Among the provinces and HUCs in the region, Pampanga recorded the highest inflation rate for bottom 30 percent income households at 4.7 percent, followed by the province of Aurora at 3.0 percent. Meanwhile, the inflation for bottom 30 percent income household in the province of Zambales registered faster deceleration at  0.7 percent in February 2025 from 1.0 percent in January 2025. (Figure 3)

 

ARLENE M. DIVINO
Regional Director 
PSA RSSO 03