Headline Inflation
Batangas Province headline inflation eased to 1.7 percent in February 2025 from 2.3 in January 2025. This brings the provincial average inflation from January to February 2025 to 2.0 percent. In February 2024, the inflation rate was higher at 3.9 percent. (Table 1 and Figure 1)

On the other hand, Region IV-A CALABARZON decreased to 2.1 percent in February 2025 from 3.1 in January 2025. In CALABARZON, Batangas with 1.7 inflation rate placed fourth after Cavite with 1.4 percent, Quezon Province has the highest at 4.3 percent, Laguna and Rizal both have 2.3 percent in February 2025.

Moreover, Philippines’ overall inflation in February 2025 reduced to 2.1 from 2.9 percent in February 2025. In February 2024, the inflation rate was higher at 3.4 percent (Table1).

Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in February 2025 was primarily brought about by the slower annual decrement of housing, water, electricity, gas and other fuels at 0.5 percent in February 2025 from 2.3 percent in the previous month. Also contributing to the downtrend was restaurants and accommodation services at 2.8 percent during the month from 3.9 percent in January 2025. In addition, the transport recorded an annual decline of (1.5) percent in February 2025 to (0.2) percent in the previous month.

Moreover, lower annual increment was also observed in the commodity group, furnishings, household equipment and routine household maintenance at 0.0 percent during the month from 0.2 percent in the previous month.

On the contrary, higher annual increase were noted in the indices of the followingcommodity groups during the month:

     a. Alcoholic beverages and tobacco, 5.0 percent from 4.2 percent
     b. Clothing and Footwear, 0.2 percent from (0.3) percent
     c. Health, 2.5 percent from 1.3 percent
     d. Recreation, Sport and Culture, 2.2 percent from 1.3 percent 
     e. Personal care, and miscellaneous goods and services, 2.0 percent from 1.7 percent

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Table 2)

Main Contributors to the Headline Inflation

The top three commodity groups contributing to the February 2025 overall inflation was the following:

     a. Food and non-alcoholic beverages with 61.1 percent share or 1.04 percentage point
     b. Restaurants and accommodation services with 20.2 percent share or 0.34 percentage point
     c. Housing, water, electricity, gas and other fuels with 6.7 percent share or 0.11 percentage point 

Food Inflation

Food inflation in Batangas remained at 3.2 percent during the month. In February 2024,food inflation was lower at 1.9 percent. (Table 3)

The acceleration of food inflation in February 2025 was primarily brought about by the faster year-on-year increase of meat and other parts of slaughtered land animals at 10.6 percent in February 2025 from 9.4 percent in previous month. This was followed by an increase in fruits and nuts at 13.3 percent from 9.9 percent and oils and nuts at 27.0 percent from 26.4 percent, respectively.

Moreover, higher annual growth rates during the month were observed in the indices of the
following food groups:

     a. Milk, other dairy products and eggs, 2.9 percent from 1.2 percent
     b. Sugar, confectionery, and desserts, (2.2) percent from (3.3) percent
     c. Fish and other seafood, (2.4) percent from (2.9) percent
     d. Cereals and cereal products, (1.1) percent from (3.1) percent
     e. Flour, bread and other bakery products, pasta products, (3.7) percent from (3.8) percent

Also, the index of rice recorded an annual increase of (0.3) percent during the month from (3.1) percent in the previous month. 

On the contrary, lower inflation rates during the month were noted in the indices of the following:

     a. corn at 7.8 percent from 19.7 percent
     b. Vegetables, tubers, plantains, cooking bananas and pulses, 3.9 percent from 20.8 percent

In addition, ready-made food and other food products index retained its previous month’s annual rate at 2.8 percent

Food inflation shared 56.6 percent or 0.96 percentage points to the overall inflation in February 2025. The top three food groups in terms of contribution to the food inflation during the month were the following:

     a. Meat and other parts of slaughtered land animals with a share of 76.6 percent or 2.5 percentage point
     b. Fruits and nuts with a share of 15.8 percent or 0.5 percent percentage point
     c. Oils and fats with a share of 12.3 percent or 0.4 percentage points