This report presents the Headline Inflation Rate (IR) for all income households in the province of Cavite during the month of January 2025.

Inflation Rate (IR) is the annual rate of change or the year-on-year change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.

The headline inflation rate for the province is 2.0 percent, which reflects a 0.2 percentage point increase from the 1.8 percent inflation rate recorded in December 2024. (see Table 1 and Figure 1).

The acceleration in Cavite's inflation rate for January 2025 was driven by a number of factors, primarily the increase in the annual growth rate of the Food and Non-alcoholic Beverages commodity group, which rose to 4.5 percent from 3.8 percent in December 2024. This commodity group had a significant impact, contributing 59.7 percent to the overall inflation for January 2025. In addition to this, there were also increases in the indices of the following commodity groups that contributed to the uptrend in overall inflation:
• Transport, -0.9 percent to -0.2 percent
• Restaurant and Accommodation Services, 3.1 percent to 3.5 percent 
• Health, 1.2 percent to 1.7 percent
• Clothing and Footwear, 4.5 percent to 4.8 percent
• Furnishing, Household Equipment and Routine Maintenance of the House, 4.2 percent to 4.3 percent
• Financial Services, -4.9 percent to 0.0 percent 
• Recreation, Sport and Culture. 1.3 percent to 1.4 percent

In contrast, commodity group Alcohol Beverages and Tobacco, 2.4 percent from 2.5 percent, and Housing, Water, Electricity, Gas and Other Fuels, -2.6 percent from -2.2 percent registered lower deflation rate during the month.

Moreover, the commodity groups Information and Communications (-0.6 percent), Education Services (12.4 percent) and Personal Care, and Miscellaneous Goods and Services, (2.6 percent) were stable this month.

The inflation rate for food rose to 4.7 percent, compared to 3.9 percent in December 2024. This 0.8 percentage point increase indicates that food prices were rising at a faster pace in January 2025 (see Table 3).

The increase in overall food inflation in January 2025 was primarily driven by the sharp increases in the annual growth rates of several food groups. 
• Vegetables, tubers, plantains, cooking bananas and pulses, 20.3 percent to 35.9 percent 
• Fruits and nuts, 8.6 percent to 8.8 percent
• Milk, other dairy products and eggs, 2.1 percent to 2.7 percent 
• Fish and other seafoods, 0.3 percent to 1.4 percent
• Oils and fats, -0.9 percent to 0.7 percent

In contrast to the sharp increases in certain food groups, there were decreases in the annual growth rates of the following food groups, helping to moderate overall food inflation in Cavite for January 2025:
• Meat and other parts of slaughtered land animals, 4.0 percent from 4.4 percent
• Ready-made food and other food products n.e.c., 4.0 percent to 4.9 percent
• Cereals and cereal products, -2.1 percent from 0.5 percent

The Sugar, Confectionery, and Desserts food group experienced deflation in January 2025, with a recorded rate of -3.0 percent, same as last December 2024.

Lastly, Deflation for rice was recorded at -3.6 percent in January 2025, a notable decrease from 0.5 percent in December 2024. Similarly, the deflation for corn dropped from -4.1 percent to -5.4 percent in January 2025.