The headline inflation in the City of Olongapo decreased to 3.6 percent in January 2025, from 4.6 percent in December 2024. In January 2024, the inflation rate was recorded at 3.4 percent.

The decrease in inflation rate in January 2025 was mainly due to the lower annual increment in the index housing, water, electricity, gas and other fuels at 3.7 percent, from 8.4 percent in December 2024. This was followed by the index of restaurants and accommodation services at 0.6 percent, from 2.4 percent in December 2024. The index of furnishings, household equipment and routine household maintenance was the third main source of deceleration of the headline inflation in January 2025 with 1.3 percent, from 2.4 percent in December 2024.

Moreover, lower annual increment was observed in the following indices:

a.    Clothing and footwear, 3.8 percent from 4.8 percent;
b.    Information and communication, 1.8 percent from 2.5 percent; and
c.    Personal care, and miscellaneous goods and services, 2.2 percent from 2.8 percent.

On the other hand, the indices of the following commodity groups recorded higher inflation rates:

a.    Food and non-alcoholic, 5.8 percent from 5.0 percent;
b.    Alcoholic beverages and tobacco, 3.4 percent from 3.0 percent;
c.    Transport, 0.4 percent from -0.3 percent;
d.    Health, 1.5 percent from 1.4 percent;
e.    Education services, 2.7 percent from 0.9 percent; and
f.    Financial services,0.0 percent from  -0.7 percent.

Meanwhile, the index of recreation, sport and culture retained its previous month’s inflation rate.

The food inflation rate at the city level accelerated to 6.1 in January 2025. In January 2024, the city’s food inflation rate was recorded at 2.6 percent.

Higher annual increment was observed in the indices of the following food groups:

a.    Rice, 2.0 percent from 0.0 percent;
b.    Fish and other seafood, 8.1 percent from 5.0 percent;
c.    Oils and fats, 2.1 percent from 0.0 percent;
d.    Fruits and nuts, 10.8 percent from 7.0 percent;
e.    Vegetables, tubers, plantains, cooking bananas and pulses, 20.3 percent from 16.8 percent; and
f.    Sugar, confectionery and desserts, -2.0 percent -2.2 percent.

On the other hand, lower annual increment was observed in the following indices:

a.    Corn, 19.5 percent from 20.1 percent;
b.    Flour, bread and other bakery products, pasta products, 2.6 percent from 4.0 percent;
c.    Meat and other parts of slaughtered land animals, 7.0 percent from 7.3 percent;
d.    Milk, other dairy products, and eggs, 4.1 percent from 4.3 percent; and
e.    Ready-made food and other food products, 3.6 percent from 4.3 percent.

Purchasing Power of Peso recorded at Php0.76 in January 2025

Purchasing Power of Peso (PPP) continues to weaken through the years and reached PhP0.76 in January 2025 in Olongapo City. The PPP of PhP0.76 implies that the PhP1.00 in 2018, as the base year, values only PhP0.76 in January 2025.

NORMAN L. BUNDALIAN
Chief Statistical Specialist
PSA Zambales

TECHNICAL NOTES

Consumer Price Index (CPI)
An indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year. Prices are compared to a base year and weighted by the appropriate consumption pattern. The present series uses 2012 as the base year.

Components of the CPI:

Base Year/Base period
A reference date at which the index is equal to 100. The base year is 2018.

Market Basket
A sample of the variety of goods and services commonly consumed by an average Filipino household to represent the price behavior of all goods and services brought by consumers.

Weight
A value attached to the commodity or group of commodities depending on the magnitude of its distribution to the index.

Sample Outlets
Establishments where prices of commodities are quoted.

Prices of Items in Market Basket
Baseline information for prices of the items in the base year is established and monitoring the prices of items is done on a regular basis.

Inflation Rate
The annual rate of change or the year-on-year changes in the average retail prices expressed in percent.

Purchasing Power of the Peso (PPP)
The measure of how much the peso in the base period is worth in the current period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.