This report presents the Headline Inflation Rate (IR) for all income households in the province of Cavite during the month of February 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 1.4 percent, which reflects a 0.6 percentage point decrease from the 2.0 percent inflation rate recorded in January 2025. (see Table 1 and Figure 1).

The deceleration in Cavite's inflation rate for February 2025 was driven by a number of factors, primarily the decrease in the annual growth rate of the Restaurants and Accommodation Services commodity group, which dropped to 1.0 percent from 3.5 percent in January 2025. This commodity group had a significant impact, contributing 36.4 percent to the overall inflation for February 2025. In addition to this, there were also decreases in the indices of the following commodity groups that contributed to the downtrend in overall inflation:
• Housing, Water, Electricity, Gas and Other Fuels, 3.7 percent from 4.3 percent
• Food and Non-Alcoholic Beverages, 4.2 percent from 4.5 percent
• Transport, -0.8 percent from -0.2 percent
• Clothing and Footwear, 4.0 percent from 4.8 percent
• Alcoholic Beverages and Tobacco, 1.3 percent to 2.4 percent
• Furnishing, Household Equipment and Routine Maintenance of the House, 3.7 percent from 4.3 percent
• Health, 1.6 percent from 1.7 percent
• Recreation, Sport and Culture. 1.3 percent from 1.4 percent

Moreover, the commodity groups Information and Communications (-0.6 percent), Education Services (12.4 percent), Financial Services (0.0 percent) and Personal Care, and Miscellaneous Goods and Services, (2.6 percent) were stable this month.

For Food, inflation rate for prices dropped from 4.7 percent in January 2025 to 4.3 percent in February 2025, reflecting a 0.4 percentage point decrease. This indicates that food prices were increasing at a slower pace in February compared to the previous month. (see Table 3).

The decrease in overall food inflation in February 2025 was primarily driven by the sharp decreases in the annual growth rates of several food groups. 
• Vegetables, tubers, plantains, cooking bananas and pulses, 17.1 percent from 35.9 percent 
• Fruits and nuts, 7.3 percent from 8.8 percent
• Cereals and cereal products, -2.2 percent from -2.1 percent 
• Ready-made food and other food products n.e.c., 3.5 percent to 4.0 percent

In contrast to the sharp decreases in certain food groups, there were increases 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 to 9.1 percent
• Fish and other seafoods, 1.4 percent to 3.1 percent
• Milk, other dairy products and eggs, 2.7 percent to 3.4 percent 
• Oils and fats, 0.7 percent to 0.9 percent
• Sugar, confectionery and desserts, -3.0 percent to -2.9 percent

Lastly, it seems that February 2025 saw significant changes in the price trends for both rice and corn. Rice experienced a deflation of -3.7 percent in February 2025, slightly lower than the -3.6 percent recorded in January 2025. Corn, on the other hand, saw a dramatic increase in inflation, rising from -5.4 percent (deflation) in January 2025 to 10.1 percent in February 2025.