The Consumer Price Index (CPI) in the National Capital Region (NCR) dropped to 124.7 percent, showing a decline of 0.2 index points from 124.9 in January 2025. On a year-on-year basis, the NCR’s CPI rose by 2.8 index points, from 121.9 in February 2024 to 124.7 in February 2025. NCR’s CPI remained lower than the national CPI, which stood at 128.1 in February 2025, down from 128.4 in the previous month

Inflation rate in NCR continues downward trend

The inflation rate in NCR continued its downward trend, declining from 3.1 percent in December 2024 to 2.8 percent in January 2025, and further to 2.3 percent in February 2025. On a year-on-year basis, the inflation rate in February 2024  was higher, recorded at 3.2 percent. (Figure 2)

At the national level, the headline inflation rate in the Philippines eased to 2.1 percent in February 2025 from 2.9 percent in January 2025. A decline in inflation was also observed across all 17 regions. 

The Cordillera Administrative Region (CAR) recorded the largest decline with a 1.6 percentage point. This was followed by Region XI (Davao Region) which posted a 1.5 percentage point decrease. Both Region XII (SOCCSKSARGEN) and Region IX (Zamboanga Peninsula) ranked third with a 1.4 percentage point decline. 

In contrast, Region VII (Central Visayas) showed no change at 2.5 percent.

Food and non-alcoholic beverages drive slower inflation rate in NCR

The slower inflation in NCR was mainly influenced by the Food and non-alcoholic beverages index, which declined from 5.5 percent in January 2025 to 4.3 percent in February 2025. This contributed approximately 65.1 percent share of the overall slowdown in inflation. 

The Transport sector was the second largest contributor to the easing inflation rate in the region, as it declined to negative 1.0 percent during the month from 0.2 percent in the previous month. This was followed by the Housing, water, electricity, gas, and other fuels sector, which decelerated to 1.9 percent in February 2025 from 2.2 percent in January 2025. 

Likewise, lower annual increments during the month were observed in the indices of the following commodity groups:

1. Health, 1.6 percent;

2. Furnishings, household equipment and routine household maintenance, 
   0.6 percent; and

3. Clothing and footwear, 1.1 percent.

In contrast, higher annual increments were observed during the month in the following indices:

1. Alcoholic Beverages and Tobacco, 2.8 percent;

2. Recreation, Sport and Culture, 0.8 percent; and

3. Restaurants and Accommodation Services, 1.8 percent.

The indices for the remaining commodity groups stayed at their respective annual rates in February 2025.

Food Inflation in NCR eases to 4.4 percent in February 2025

Food inflation in NCR eased to 4.4 percent in February 2025 from 5.8 percent in January 2025, marking a reduction of 1.4 percentage points. 

This slowdown in food inflation was primarily driven by the Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses commodity group, from 25.7 percent in January 2025 to 9.1 percent in February 2025. This contributed approximately 74.2 percent share of the total deceleration in food inflation. Meanwhile, Rice inflation declined from 0.7 percent to negative 1.1 percent, while Fish and Other Seafood inflation slowed from 4.4 percent in the previous month to 3.9 percent during the month. 

Additionally, the following food commodity groups also exhibited lower inflation during the month:

1. Fruits and nuts, 6.0 percent;

2. Corn, 16.0 percent; and

3. Ready-made food and other food products n.e.c., 3.5 percent;

Meanwhile, the following food commodity groups observed an upward trend in inflation this month:

1. Meat and other parts of slaughtered land animals, 9.7 percent;

2. Oils and fats, -0.9 percent;

3. Milk, other dairy products and eggs, 2.9 percent; and 

4. Sugar, confectionery and desserts, -1.3 percent.

The Flour, Bread and Other Bakery Products, Pasta Products,  and Other Cereals remained at its annual rate in February 2025.

Peso purchasing power remains at 0.80

The PPP measures the real value of 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. The PPP is inversely related to the CPI; thus, an increase in the CPI will result in a decrease in the PPP. 

The purchasing power of the peso (PPP) in NCR remained at 0.80 in February 2025, making the third consecutive month at this level. This means that the real value of PhP1.00 in 2018 prices is equivalent to PhP0.80 in February 2025. A year ago, in February 2024, the PPP was slightly higher at 0.82, reflecting the gradual loss of the peso's purchasing power over time. (Figure 3)

(Sgd.) PACIANO B. DIZON
Regional Director