Region 7 inflation drops to 3.4 percent in August

DRIVEN by slower price increases in food, non-alcoholic beverages, and transportation, inflation in Central Visayas dropped from 4.5 percent in July to 3.4 percent in August 2024, according to the Philippine Statistics Authority Central Visayas (PSA 7).

Engr. Felixberto Sato Jr., the supervising statistical specialist of PSA 7, reported the figures on Wednesday, September 11. He explained that the decline in inflation was mainly driven by the reduced inflation rate in food and non-alcoholic beverages, which fell to 5.8 percent in August from 8.6 percent in July, contributing 58.1 percent to the overall inflation reduction.

Transportation inflation also saw a significant decrease, dropping to negative 5.5 percent from 2.0 percent, accounting for 38.3 percent of the region’s inflation drop.

Cereal and cereal product prices, a major food category, slowed down with inflation decreasing from 18 percent in July to 14.4 percent in August.

Fish and seafood prices dropped further from negative 2.9 percent to negative 6.3 percent, while inflation for vegetables, tubers, and plantains eased from 15.5 percent to 6.9 percent. Overall, food inflation fell from 9.1 percent in July to 6.2 percent in August.

Sato pointed out that prices are still increasing but at a slower pace.

"The rise in prices, especially for food and transportation, has slowed down," Sato said.

In the transportation sector, the significant drop in gasoline prices had a major impact. Gasoline inflation fell from 4.7 percent in July to negative 7.3 percent in August, while passenger sea transport recorded an even larger decline, from negative 7.6 percent to negative 36.8 percent.

Sato clarified that even though transport inflation has decreased, fares remain high but are no longer rising as quickly. “The drop in gasoline prices has reduced the operating costs for transport operators,” he added.

Food and non-alcoholic beverages continued to be the largest contributors to overall inflation in August, accounting for 63.8 percent of the total.

However, some commodity groups experienced faster inflation in August. Housing, water, electricity, gas, and other fuels saw their inflation rates rise from 0.3 percent to 3.5 percent. Information and communication services inflation increased from 0.4 percent to 0.6 percent, while education services had the highest rise, from 4.9 percent to 7.2 percent.

Bohol recorded the most significant drop in inflation, falling from 4.9 percent in July to 2.1 percent in August. Negros Oriental also saw relief, with inflation declining from 3.4 percent to 2.7 percent, Cebu’s inflation dropped from 4 percent to 3 percent, and Siquijor saw its inflation rate fall from 4.3 percent to 3.1 percent.

Sato reiterated that while inflation has slowed, prices are still rising.

"Inflation measures how fast prices increase, and although the rate is down, we are still seeing price hikes, just at a slower pace," Sato said.

So far this year, Central Visayas’ average inflation rate stands at 3.6 percent.

However, low-income households continue to struggle with higher inflation rates. PSA 7 reported that inflation for these households stands at 5.2 percent, which exceeds the government’s target range of 2 to 4 percent. These households spend a large portion of their income on essentials like food and non-alcoholic beverages, which account for 65.6 percent of their expenses.

PSA 7 warned that food prices remain a major concern due to various factors like weather conditions, global events, and supply-demand imbalances affecting inflation trends in the region.

Meanwhile, on the national level, the inflation rate stood at 3.3 percent in August, falling within the Bangko Sentral ng Pilipinas’ 2 to 4 percent target.

BSP attributed the July inflation spike to supply pressures on food, especially rice, but noted that these pressures have since eased, contributing to the overall decline in August.(MyTVCebu)

• Tags
• #Inflation
• #Central Visayas
• #Philippine Statistics Authority 7