Headline Inflation

The Batangas Province headline or overall inflation accelerated further to 1.4 percent in June 2025 from 1.2 in May 2025. This brings the provincial average inflation from January to June 2025 to 1.5 percent. In June 2024, the inflation rate was higher at 3.9 percent.   (Table 1 and Figure 1)

On the other hand, Region IV-A CALABARZON increased to 1.9 percent in June 2025 from 1.6 in May 2025.   In CALABARZON, the provinces of Laguna and Rizal have the highest inflation rate at 2.3 percent in June 2025. It was followed by the provinces of Quezon at 1.8 percent, Cavite at 1.7 percent and Batangas at 1.4 percent in third, fourth and fifth, respectively. The province of Lucena have the lowest inflation rate at 0.6 percent in June 2025. 

Moreover, the Philippines’ overall inflation slowly accelerated at 1.4 percent in June 2025 from 1.3 percent in May 2025.  In June 2024, the inflation rate was higher at 3.7 percent (Table 1). 

Main Drivers to the Upward Trend of the Headline Inflation 

The uptrend in the overall inflation in June 2025 was primarily driven by the slower annual increment of food and non-alcoholic beverages at 2.4 percent in June 2025 from 2.0 percent in the previous month.   Also contributed to the uptrend were the faster year-on-year increase in the transport index at (2.9) percent during the month from a (3.9) percent annual increase in May 2025 and education services at 4.0 percent during the month from 1.0 percent in the previous month. 

In addition, slower annual increased were noted in the following commodity groups:

1.  a. Personal care and miscellaneous goods and services, 3.3 percent from 3.1 percent

2.  b. Recreation, Sport and Culture, 1.7 percent from 1.6 percent 

On the contrary, compared with their previous month’s inflation rates, lower rates were observed during the month in the indices of the following commodity groups:

1.  a. Housing, water, electricity, gas and other fuels, 1.1 percent from 1.5 percent

2.  b. Health, 3.2 percent from 3.3 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 June 2025 overall inflation were the following:

    a. Food and non-alcoholic beverages with 40.0 percent share or 0.74 percentage point

    b. Housing, water, electricity, gas and other fuels with 16.8 percent share or 0.24 percentage point

    c. Alcoholic Beverages and Tobacco with 12.6 percent share or 0.18 percentage point

Food Inflation

Food inflation in Batangas further rose to 2.2 percent in June 2025 from 1.8 percent in the previous month.  In June 2024, food inflation was higher at 4.7 percent. (Table 3)

The acceleration of food inflation in June 2025 was primarily brought about by the faster year-on-year increase in the index of fish and other seafood at 0.6 percent in June 2025 from (2.9) percent in the previous month. The index of meat and other parts of slaughtered land animals at 14.6 percent in June 2025 from 13.2 percent in the previous month also contributed to the uptrend. 

In addition, higher inflation rates were observed in the following commodity groups during the month:

1. a. Oils and fats, 56.2 percent from 41.8 percent

2. b. Fruits and nuts, 14.1 percent from 13.9 percent

3. c. Flour, bread and other bakery products, -2.4 percent from -2.6 percent

4. d. Corn, 5.4 percent from -0.5 percent 

On the contrary, lower inflation rates during the month were observed in the indices of the following food groups: 

a. Milk, other dairy products and eggs, 1.7 from 2.3 percent       

b. Vegetables, tubers, plantains, cooking bananas and pulses, (1.8) percent from 4.9 percent

c. Sugar, confectionery and desserts, (1.8) percent from (1.4) percent

d. Ready-made food and other food products 1.7 percent from 2.5 percent

Food inflation shared 40.9 percent or 0.61 percentage points to the overall inflation in June 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 147.3 percent or 3.24 percentage point

           b. Oils and fats with a share of 40.0 percent or 0.88 percentage point

           c. Fruits and nuts with a share of 23.5 percent or 0.52 percentage point