EASTERN SAMAR

1. Headline Inflation

Inflation Rate (IR) in Eastern Samar slowed down to 1.8 percent in February 2025 from 3.0 percent in January 2025. The Province’s inflation rate is higher than the 1.2 percent IR in Region VIII and lower than the 2.5 percent IR of the Philippines. In February 2024, inflation rate was higher at 3.5 percent. (Figure 1, and Tables A and B)

Main Drivers of the Downward Trend of Eastern Samar’s Inflation

The downward trend in the province’s inflation rate in February 2025 was mainly driven by a slower annual increase of the heavily-weighted food and non-alcoholic beverages at 2.1 percent from a 3.7 percent annual increase in January 2025. Also, housing, water, electricity, gas and other fuels, which recorded a 1.7 percent inflation rate from an annual increase of 3.4 percent, and the lower inflation rate of personal care, and miscellaneous goods and services at 1.0 percent from a 1.7 percent annual increase in the previous month, contributed to the downward trend of the province’s inflation. (Table C)

In addition, the following commodities registered slower inflation rates in February 2025:

(a)    Furnishings, household equipment and routine household maintenance, 2.1 percent from 2.6 percent;
(b)    Health, 0.8 percent from 1.5 percent;
(c)    Recreation, sport and culture, 2.1 percent from 3.1 percent;
(d)    Alcoholic beverages and tobacco, 3.3 percent from 3.7 percent; 
(e)    Clothing and footwear, 2.2 percent from 2.4 percent;
(f)    Information and communication, 0.2 percent from 0.4 percent; and
(g)    Restaurants and accommodation services, 1.1 percent from 1.2 percent.

On the other hand, higher inflation rate was recorded in transport at
1.0 percent from zero percent in the previous month.

Meanwhile, education services and financial services maintained their respective previous month’s inflation rates both at 0.0 percent.

Top Three Main Contributors to Eastern Samar Inflation

The following commodity groups were the top three (3) contributors to the February 2025 inflation of the province of Eastern Samar:

a.    Food and non-alcoholic beverages with 58.6 percent share or 1.05 percentage points;
b.    Housing, water, electricity, gas and other fuels with 17.0 percent share or 0.31 percentage point; and
c.    Clothing and footwear with 4.6 percent share or 0.08 percentage point.

2.    Food Inflation

Inflation rate of Food in the Province in February 2025 slowed down to 
2.2 percent from 3.9 percent in the previous month. In February 2024, food inflation was higher at 4.3 percent. (Table D)

Main Drivers of the Downward Trend of Food Inflation

The downward trend of food inflation in February 2025 was primarily due to the annual decrease in inflation rate of rice at 3.4 percent from an annual inflation rate of 0.8 percent in January 2025. Also, the slower annual increase in fish and other seafood, and the decline in inflation rate of fruits and nuts at 6.9 percent and 0.3 percent, respectively from an annual increase of 11.0 percent and 2.3 percent, respectively in the previous month contributed to the downward trend of the province’s food inflation.

Also, the following food groups registered slower annual increase in their inflation rates in February 2025 compared to that in the previous month:

(a)    Flour, bread, and other bakery products, pasta products and other cereals, 3.4 percent from 3.7 percent; and
(b)    Milk, other dairy products and eggs, 4.6 percent from 5.0 percent.

On the other hand, meat and other parts of slaughtered land animals; vegetables, tubers, plantains, cooking bananas and pulses; and ready-made food and other food products not elsewhere classified, posted faster inflation rates at 4.4 percent, 11.4 percent, and 4.3 percent, respectively from 3.4 percent, 7.1 percent, and 3.8 percent, respectively in the previous month.

Meanwhile, oils and fats recorded faster annual decrease in inflation rate at 1.6 percent from an annual decline of 0.7 percent in January 2025. Sugar, confectionery and desserts registered slower annual decline at 5.2 percent from an annual decrease of 6.5 percent in the previous month.

For this month, the Purchasing Power of Peso (PPP) in Eastern Samar strengthened at 78 centavos. This indicates that a peso in 2018 has a value of 78 centavos in February 2025. (Figure 2)

TECHNICAL NOTES

Consumer Price Index (CPI) - is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year. It shows how much on the average, prices of goods and services have increased or decreased from a reference period known as the base year. The current CPI series is 2018-based.

The 2018 FIES expenditure data were used to directly estimate the 2018 CPI weights at the national and regional levels. However, the 2018 FIES estimates for the expenditure data at the provincial level were not directly utilized in estimating the CPI expenditure weights as the data at the provincial/city level may not be reliable with the use of the households' master sample (MS) that was utilized in selecting the 2018 FIES sample households. The MS was drawn using regions as domains in generating estimates in all the household surveys of the PSA starting July 2013. The provincial/city expenditure data were derived using the model-based method in small area estimation procedures using the regional expenditure data as the control total for all the expenditure data within the specific region. Using these estimates, the weight for each item of expenditure is computed as a proportion of that item of expenditure to the total national expenditure. A raking procedure was done to adjust the weights of the provinces so that the provincial weights when added up will equal to the regional weights.

The formula used in computing the CPI is the weighted arithmetic mean of price relatives, a variant of the Laspeyres formula with fixed base year period weights as shown below:

            ∑ [(Pn / P0) * (P0*Q0)]
CPI =               X 100
              ∑(P0*Q0)

where Pn    = current price
P0    = base year price or base price P0 * Q0 = base year weights

Base Period or Base Year - is the period, usually a year, at which the index number is set to 100. It is the reference point of the index number series.

Market Basket - is a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Inflation Rate (IR) - is defined as the annual rate of change or the year-to-year change in the CPI and is computed as:

(CPI2 – CPI1)
Inflation Rate =     X 100
                CPI1
where CPI2 = is the CPI in the second period CPI1 = is the CPI in the previous period
Purchasing Power of the Peso (PPP) - is a measure of the real value the peso in a given period relative to a chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100.

PPP = (1/CPI  (All Items) *100

FOR THE CHIEF STATISTICAL SPECIALIST:

SUZANNE B. AMOSCO
(Supervising Statistical Specialist)
Officer-in-Charge