Cebu’s October inflation rate surges to 2.8 percent

Local

CEBU Province’s inflation rate surged to 2.8 percent in October 2024, primarily driven by the disruptions caused by recent typhoons.

These severe weather events, which affected key agricultural regions in Luzon and the Visayas, led to significant supply shortages and higher prices, particularly in food and non-alcoholic beverages.

According to the Philippine Statistics Authority (PSA) Cebu, the inflation increase was largely attributed to a 4.4 percent rise in food and non-alcoholic beverages, a sharp jump from 1.1 percent the previous month.

Other contributing factors included a 2.8 percent increase in housing, water, electricity, gas, and fuel costs, up from 2.2 percent in September.

The transport sector also showed some improvement, recovering from a -8.6 percent decrease in September to -1.3 percent in October.

During their information dissemination event, Chief Statistical Specialist Melchor Bautista noted that the recent typhoons had significantly impacted agricultural supplies, particularly those coming from storm-hit regions in Luzon.

With key provinces in Luzon suffering heavy damage to crops and livestock, the disruption in the flow of goods has led to shortages and price increases.

He further explained that Cebu, which relies on agricultural products from other regions, particularly Luzon, felt the ripple effect of these typhoon-induced supply chain issues.

The Department of Agriculture (DA) reported that the agriculture sector in the affected regions suffered losses amounting to P6.83 billion due to storms Kristine and Leon.

Affected areas included the Cordillera, Ilocos Region, Cagayan Valley, and Central Luzon, among others, which supply a significant portion of Cebu’s agricultural goods.

This supply chain disruption contributed to the higher costs of food products, particularly vegetables, meat, and other staples.

In Cebu City, inflation also rose to 4.2 percent in October, up from 3.9 percent in September.

Meanwhile, Lapu-Lapu City and Mandaue City experienced a slight decline in inflation, with rates dropping to 2.6 percent and 2.7 percent, respectively, from 4.3 percent and 5.4 percent the previous month. Experts suggest that the price stabilization in these areas may be due to lower commodity prices from Mindanao, where some of Cebu's meat products are sourced.

Nationally, the Philippines’ inflation rate rose to 2.3 percent in October from 1.9 percent in September, reflecting similar inflationary pressures across the country. The Central Bank has set a target inflation range of 2 to 4 percent for the year.

Typhoons, according to economic experts, have played a crucial role in pushing inflation upward, especially in food and agricultural products. The combined effects of weather disturbances and seasonal changes have led to disruptions in the domestic supply of essential goods, contributing to the overall increase in prices across various regions.(MyTVCebu)