Table 1. Year-on-Year Inflation Rates, CAR:
June 2024, May 2025 – June 2025
In Percent (2018=100)
Figure 1. Inflation Rates for All Items, CAR: June 2024 - June 2025
In Percent (2018=100)
1. Cordillera Administrative Region
The overall inflation rate for all income households in the region slowed down to 2.0 percent in June 2025, down from 2.5 percent in May 2025. When compared to June 2024, the region's inflation rate was recorded at 4.6 percent (Table 1 and Figure 1).
1.1 Main Drivers to the Downward Trend of Inflation in Cordillera
Housing, Water, Electricity, Gas and Other Fuels primarily influenced the downward trend of the overall inflation of the region. This commodity group posted a 3.3 percent inflation in June 2025 from 4.4 percent in May, contributing 49.2 percent to the downward trend of the inflation rate. Moreover, the slower increases in Food and Non-Alcoholic Beverages, with a 1.9 percent inflation rate from 2.6 percent, including Personal Care, and Miscellaneous Goods and Services with 3.3 percent from 4.1 percent, further decelerated the region’s inflation rate by 43.6 percent and 6.0 percent shares, respectively.
Table 2. Year-on-Year Inflation Rates by Commodity Group, CAR:
June 2024, May 2025 – June 2025
In Percent (2018=100)
Among the 13 major commodity groups, five posted slower inflation rates:
a. Food and Non-Alcoholic Beverages, 1.9 percent from 2.6 percent;
b. Alcoholic Beverages and Tobacco, 2.8 percent from 3.0 percent;
c. Housing, Water, Electricity, Gas and Other Fuels, 3.3 percent from 4.4 percent;
d. Information and Communication; 0.7 percent from 0.8 percent; and
e. Personal Care, and Miscellaneous Goods and Services, 3.3 percent from 4.1 percent.
On the other hand, two commodity groups posted faster inflation rates:
a. Transport, -0.4 percent from -1.2 percent; and
b. Recreation, Sport and Culture, 1.5 percent from 1.3 percent.
Additionally, six commodity groups sustained constant inflation rates:
a. Clothing and Footwear, 0.7 percent;
b. Furnishings, Household Equipment and Routine Household Maintenance, 2.3 percent;
c. Health, 2.4 percent;
d. Education Services, 0.3 percent;
e. Restaurants and Accommodation Services, 4.1 percent; and
f. Financial Services, 0.0 percent.
1.2 Main Contributors to Cordillera Inflation
In June 2025, Housing, Water, Electricity, Gas and Other Fuels group was the largest contributor to the region’s inflation rate. This commodity group accounted for 38.1 percent of the overall inflation, contributing 0.8 percentage points to the total inflation rate of 2.0 percent. This was followed by:
a. Food and Non-Alcoholic Beverages, 34.9 percent share or 0.7 percentage points; and
b. Restaurants and Accommodation Services, 8.5 percent share or 0.2 percentage points.
2. Food Inflation in CAR
Food inflation in CAR decreased to 1.8 percent in June 2025, from 2.5 percent in May 2025. This accounted for 30.6 percent of the total inflation rate of 2.0 percent in the region. Compared to May 2024, food inflation was faster at 6.9 percent (Table 3).
2.1 Main Drivers of the Downtrend in Food Inflation
In June 2025, the downtrend in Food Inflation was primarily driven by a faster decline in the price of Rice. This has a 46.2 percent share to food inflation. This commodity group recorded an inflation rate of -7.4 percent from -5.6 percent in May 2025.
In addition, slower inflation rates were observed in the following food groups:
a. Flour, bread and other bakery products, pasta products, and other cereals, 2.4 percent from 2.8 percent;
b. Meat and other parts of slaughtered land animals, 9.6 percent from 9.8 percent;
c. Milk, other dairy products and eggs, 2.0 percent from 2.2 percent;
d. Vegetables, tubers, plantains, cooking bananas and pulses, -2.3 percent from 1.5 percent; and
e. Ready-made food and other food products not elsewhere classified, 4.0 percent from 4.8 percent.
Meanwhile, faster inflation rates were noted in the following food groups during the month:
a. Corn, -0.7 percent from -2.4 percent;
b. Fish and Other Seafood, 6.0 percent from 5.2 percent;
c. Oils and fats, 2.9 percent from 2.7 percent;
d. Fruits and nuts, 15.3 percent from 10.2 percent; and
e. Sugar, confectionery and desserts, 1.7 percent from 1.5 percent.
Table 3. Year-on-Year Inflation Rates for Food, CAR: June 2024,
May 2025 & June 2025: In Percent (2018=100)
2.2 Main Contributors to Cordillera Food Inflation
The top three food groups contributing to the 1.8 percent food inflation during the month of June 2025 were:
a. Meat and Other Parts of Slaughtered Land Animals, 98.8 percent share or 1.8 percentage points;
b. Fruits and Nuts, 46.3 percent share or 0.8 percentage points; and
c. Fish and Other Seafood, 44.2 percent share or 0.8 percentage points.
3. Provinces/ Highly Urbanized City (HUC) in CAR
In June 2025, five provinces/HUC in the region posted slower inflation rates. The inflation rates for each province/city were as follows:
a. Benguet, 1.4 percent from 2.1 percent;
b. Baguio City, 2.9 percent from 3.2 percent;
c. Ifugao, 3.0 percent from 3.7 percent;
d. Kalinga, 0.1 percent from 1.7; and
e. Mountain Province, 2.2 percent from 2.6 percent.
Additionally, the province of Abra posted the highest inflation rate with 3.4 percent from the 2.7 percent in May, while the province of Kalinga posted the lowest with 0.1 percent. (Table 1)
4. Purchasing Power of Peso (PPP)
In June 2025, the region's PPP stood at PhP 0.79. This indicates that PhP 100.00 in 2018 had an equivalent value of PhP 79.00 during the reference month. Among the six provinces and one HUC, the City of Baguio and the province of Apayao recorded higher PPPs than the regional level. This was posted at PhP 0.81 and PhP 0.80, respectively.
On the other hand, three areas registered lower PPP values: Ifugao and Mountain Province both at PhP 0.76 and Kalinga at PhP 0.78. Meanwhile, the provinces of Abra and Benguet had a PPP equal to the regional level at PhP 0.79.
________________________________________________________________
Note:
CPI and inflation rates by province and HUCs are available on the PSA website (https://openstat.psa.gov.ph).
(SGD)
VILLAFE P. ALIBUYOG
Regional Director
Designation Initials Date
CSS AFRB 11 July25
SuSS WBM 10 July 25
AS JPL 07 July 25
Technical Notes
Base Period 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.
Consumer Price Index (CPI) is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by an average Filipino household. It shows how much on average, prices of goods and services have increased or decreased from a particular reference period known as base year.
Inflation Rate refers to the annual rate of change or the year-on-year change of the CPI expressed in percent. Inflation is interpreted in terms of the declining purchasing power of money.
Market Basket for CPI purposes, market basket is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.
Philippine Classification of Individual Consumption According to Purpose (PCOICOP) A detailed classification of individual consumption expenditures on goods and services incurred by the three (household, general government, non-profit institutions serving households) of the five institutional sectors (non-financial corporations, financial corporations) of the 1993 and 2008 Systems of National Accounts (SNA). The PCOICOP was patterned after the United Nations COICOP.
Purchasing Power of the Peso (PPP) shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.
Weight is a value attached to a commodity or group of commodities to indicate the relative importance of that commodity or group of commodities in the market basket.
