Inflation Rate for Central Luzon’s Bottom 30 Percent Income Households Increased to 3.3 Percent

Central Luzon’s inflation rate for the bottom 30 percent income households increased to 3.3 percent in January 2025 from 3.2 percent in December 2024. This marks a 0.1 percentage point increase from December 2024 and 1.4 percentage points decrease compared to the inflation rate recorded in January 2024. (Figure 1)

Main Drivers to the Upward Trend of the January 2025 Overall Inflation in Central Luzon

The increase in the overall inflation in January 2025 was primarily driven by higher year-on-year growth rates in several key indices. These included food and non-alcoholic beverages, which rose to 3.6 percent from 3.2 percent in December 2024; alcoholic beverages and tobacco, which increased to 4.2 percent from 3.0 percent; and furnishings, household equipment, and routine household maintenance, which grew to 1.9 percent from 1.6 percent. Additionally, health also recorded a faster annual increase, rising to 2.0 percent from 1.5 percent. (Table 1)

On the other hand, slower annual increments were recorded in the following indices:
•    Clothing and footwear at 2.3 percent from 2.4 percent;
•    Housing, water, electricity, gas, and other fuels at 3.8 percent from 4.5 percent;
•    Transport at 0.7 percent from 1.0 percent;
•    Recreation, sports, and culture at 4.2 percent from 4.3 percent;
•    Education services at 2.8 percent from 3.0 percent;
•    Restaurants and accommodation services at 3.1 percent from 4.1 percent; and
•    Personal care and miscellaneous goods and services at 3.6 percent from 3.7 percent.

Meanwhile, the information and communication maintained its previous month’s annual rate of 0.3 percent, while the financial services showed a slight change from a decline of 0.1 percent in December 2024 to 0.0 percent in January 2025.

Main Contributor to the January 2025 Overall Inflation in Central Luzon

The following commodity groups were the top three contributors to the January 2025 overall inflation for the bottom 30% income households:
•    food and non-alcoholic beverages with 54.6 percent share or 1.8 percentage points;
•    housing, water, electricity, gas and other fuels with 17.7 percent share or 0.6 percentage point; and
•    restaurants and accommodation services with 10.5 percent share or 0.4 percentage point.

Food Inflation

The annual growth rate in the regional food index accelerated to 3.7 percent in January 2025 from 3.2 percent in December 2024.

Main Drivers to the Upward Trend of the January 2025 Food Inflation in Central Luzon

The acceleration of food inflation can be mainly attributed to the faster increment in the index of vegetables, tubers, plantains, cooking bananas and pulses at 36.2 percent in January 2025 from 27.2 percent in December 2024, fish and other seafood at 4.8 percent in January 2025 from 1.6 percent in December 2024, and meat and other parts of slaughtered land animals at 7.0 percent in January 2025 from 5.3 percent in December 2024.

In addition, faster acceleration was also recorded in the following indices:
•    flour, bread, and other bakery products, pasta products at 2.1 percent from 2.0 percent;
•    oils and fats at 4.4 percent from 1.5 percent; and
•    fruits and nuts at 6.7 percent from 5.7 percent;

On the other hand, slower annual increments were registered in milk, other dairy products and eggs at 1.6 percent in January 2025 from 2.9 percent in December 2024 and in the index of corn at 17.5 percent from 22.8 percent.

Meanwhile, faster deceleration was recorded in the index of rice with an annual decline of 7.4 percent from an annual decrease of 4.1 percent. Sugar, confectionery and desserts recorded an annual decline of 1.6 percent from an annual decrease of 2.2 percent in December 2024.

The index of ready-made food and other food products not elsewhere classified, retained its previous month’s inflation rate of 4.6 percent. (Table 2)

Relative to the December 2024 inflation rates for bottom 30 percent income households, two provinces (Bulacan and Zambales) and one Highly Urbanized City (HUC) (City of Olongapo) in the region exhibited lower inflation rates in January 2025 as compared to their respective previous month’s inflation. In contrast, Pampanga, Tarlac, Aurora, Nueva Ecija, and City of Angeles exhibited higher inflation rates while Bataan maintained the same rate as the previous month. Bulacan registered the largest decrease in inflation with a difference of 0.6 percentage point.

Among the provinces and HUCs in the region, Pampanga recorded the highest inflation rate for bottom 30 percent income households at 5.5 percent, followed by City of Angeles at 4.7 percent. Meanwhile, Zambales registered the lowest inflation rate for the bottom 30 percent income households at 1.0 percent, followed by Bataan and Nueva Ecija at 2.3 percent and 2.5 percent, respectively. (Figure 3)

ARLENE M. DIVINO
Regional Director 
PSA RSSO 03