Rising rent, power rate push Cordillera inflation higher in February
BAGUIO CITY—Rising rental costs, higher electricity rates, and increasing food prices—including “bangus” (milkfish) farmed in Dagupan City, Pangasinan—pushed inflation in the Cordillera region higher in February, the Philippine Statistics Authority (PSA) reported on Thursday.
The region’s inflation rate climbed to 3.1 percent in February, up from 1.9 percent in January, according to the PSA.
Price increases were recorded across most Cordillera provinces: Ifugao, known for its rice terraces, saw inflation rise from 1.5 percent in January to 3.7 percent in February; Kalinga from -1.1 percent to -0.2 percent; Abra from -2.2 percent to 2.3 percent; Apayao from 2.3 percent to 4.3 percent; and Mountain Province from 1.6 percent to 3.3 percent.
Benguet—the region’s vegetable trading hub—was the only area that posted a slight slowdown, with inflation easing from 2.2 percent in January to 2 percent in February.
The price pressures come amid concerns over possible economic shocks stemming from the recent United Stated-Israeli attacks on Iran.
Transport inflation across the region remained steady at 0.4 percent in both January and February, said Aldrin Federico Bahit Jr., PSA chief statistician for the Cordillera.
However, he noted that fuel prices began to increase this week due to the escalating conflict in the Middle East. The impact is particularly felt in Baguio, where gasoline and diesel prices have historically been P5 to P15 higher than in nearby areas such as San Fernando City in La Union.
During the Feb. 9 session of the city council, the Department of Energy attributed the fuel price disparity to the city’s soaring property values and strong demand from tourists.
Property values
Travel time to Baguio has also shortened in recent years—about four hours from Manila and around 90 minutes from nearby towns in La Union and Pangasinan—driving increased fuel demand.
In Kalinga, the Cordillera’s top rice producer, rising fuel prices also contributed to higher inflation. Diesel inflation there jumped from 1.5 percent in January to 4.9 percent in February, while gasoline inflation rose from 0.8 percent to 2.8 percent over the same period.
Bahit said the full impact of rising global oil prices could be felt in March and April, when crude oil prices may peak at $120 per barrel.
“Normalization is dependent on the length of combat and the stability of the Strait of Hormuz,” Bahit said during a briefing, referring to the key Persian Gulf shipping route used by oil tankers supplying Asia.
He projected that domestic oil prices may start to ease by the second half of 2026, noting that it takes time for existing fuel inventories purchased during periods of high prices to be replaced with lower-priced stocks.
Beyond higher transport costs, Bahit warned that tensions in Iran and the Gulf states could also disrupt travel, an important driver of many Cordillera economies.
Baguio posted the highest inflation increase in the region, rising from 4 percent in January to 4.8 percent in February—one of the city’s busiest months as it hosted the 30th Panagbenga (Baguio Flower Festival) and the Philippine Military Academy alumni homecoming.
Inflation in full-service restaurants and accommodation services in Baguio surged from 2.6 percent in January to 6.1 percent in February, as festival crowds filled restaurants and hotels.
Housing costs also climbed, with rent inflation rising to 4.9 percent in February from 4 percent in January, Bahit said.
Meanwhile, electricity prices across the Cordillera posted a sharp increase, jumping to 7-percent inflation in February from -6.4 percent in January.
