CAR’S INFLATION RATE DROPS IN FEB

March 18, 2025 JUST IN

Baguio City

The overall inflation rate in the Cordillera Administrative Region (CAR) has dropped to 2.5 percent for February 2025, down from 4.1 percent in January (2025),the Philippine Statistics Authority – CAR said. Chief Statistician Specialist Aldrin Federico R. Bahit, Jr. of the PSA – RSSO CAR reported that the primary factor contributing to this slowdown is the “Food and Non-alcoholic Beverages” in a virtual meeting held on Friday ( March 14). This sector played a significant role, accounting for 63.3 percent of the overall decline in inflation in the region. Notably, the inflation rate for vegetables, tubers, plantains, cooking bananas, and pulses has plummeted to 7.7 percent.

This represent a remarkable decline from the previous rate of 21.9 percent in January 2025, largely attributed to a surplus in tomato production. It underscores the importance of agricultural output in mitigating inflationary pressures in the region. Housing, water, electricity, gas, and other fuels also contributed to the decline in inflation rate of the region with 3.0 percent from 4.7 percent in January, representing a 47.0 percent share in the overall downtrend. Transport sector’s inflation rate posted at 0.6 percent from 1.0 percent, contributing 10.7 percent to the overall reduction.

Within CAR, Mountain Province recorded the highest inflation rate at 3.7 percent, although this is a decrease from 3.9 percent in January. This slight decline indicates a positive trend in managing inflation in the area. Baguio City saw a drop from 4.1 to 3.4 percent ; Benguet decreased to 2.2 percent from 3.0 while Kalinga’s rate to 1.8 percent from 5.0 percent. Apayao posted the lowest inflation rate in the region at -1.2 percent , down from -0.6 percent. This remarkable production of tomatoes in Apayao, with prices dropping to 20 to 25 pesos per kilo, has been cited as a key factor in this downward trend. The PSA said across all provinces in CAR, inflation rates have decreased from January to February. This trend highlights the effectiveness of agricultural production in stabilizing prices. Ifugao inflation rate also dipped to 2.1 percent from 2.9 percent; and Abra recorded 2.7 percent from 6.9 percent.

The agency noted that the peso purchasing power in CAR has diminished. It is now valued at 79 pesos for every 100 pesos compared to the baseline year of 2018, indicating the economic pressures faced by consumers. The trends observed in CAR reflect broader economic dynamics, where high agricultural production plays a crucial role in stabilizing prices. This is particularly important in regions heavily reliant on agriculture for their economic stability. Overall, the February 2025 inflation report underscores the importance of agricultural output in mitigating inflationary pressures in the Cordillera Administrative Region. The data presents a hopeful outlook for consumers and policymakers alike.

Joshua Ebalane UB Intern / ABN