ILOILO City – Headline inflation or overall inflation in Western Visayas decelerated further to 5.8 percent in July from 6.8 percent in June.
This is the fifth consecutive month of slowdown in headline inflation and lowest since April 2022, according to the Philippine Statistics Authority (PSA) Region 6.
In July of the previous year, Region 6’s inflation was higher at 6.9 percent.
Main Drivers
The deceleration of the headline inflation in Western Visayas was primarily brought about by the slower annual increase in the index of housing, water electricity, gas and other fuels at 5.3 percent, from 7.9 percent in June 2023.
This was followed by food and non-alcoholic beverages at 7.5 percent in July, from 8.5 percent in the previous month.
The third top contributor to deceleration is the index of transport with -3.8 percent inflation rate from -2.1 percent in June 2023.
Slower annual growth is also noted in the indices of the following commodity groups:
a. Furnishings, household equipment and routine household maintenance, 8.6 percent
b. Clothing and footwear, 4.1 percent
On the other hand, higher inflation rates were observed in the following indices:
a. alcoholic beverages and tobacco, 11.3 percent
b. health, 2.8 percent
c. information and communication, 2.5 percent
d. recreation, sport and culture, 5.4 percent
e. restaurants and accommodation services, 11.8 percent
Meanwhile, indices of Education services (0.4 percent), Financial Services (0.0 percent) and Personal care, and miscellaneous goods and services (6.8 percent) retained their previous month’s inflation rates.
Contributors to Headline Inflation
The top three commodity groups contributing to the Western Visayas headline inflation rate of 5.8 percent in July 2023 were the following:
a. food and non-alcoholic beverages with 54.2 percent share or 3.1 percentage points
b. housing, water, electricity, gas and other fuels with 16.9 percent share or 1.0 percentage points
c. restaurants and accommodation services with 12.4 percent share or 0.7 percentage points
Food Inflation
Food inflation in Western Visayas during July 2023 went down to 7.6 percent, from 8.6 percent in June 2023. Food inflation in June 2022 was noted at 9.1 percent.
The deceleration of food inflation in July 2023 was brought about by the lower year-on-year growth in the index of fish and other seafood at 6.7 percent from 10.0 percent in June 2023. This is followed by meat and other parts of slaughtered land animals at -0.9 percent from 2.0 percent in June 2023. Third is sugar, confectionery and desserts, at 25.4 percent from 31.3 percent inflation in the previous month.
Lower annual growth rates were also noted in the indices of the following food items:
a. fruits and nuts, 4.8 percent
b. milk, other dairy products and eggs, 10.1 percent
c. oils and fats, 14.3 percent
d. ready-made food and other food products not elsewhere classified, 7.9 percent
Meanwhile, higher inflation rate was noted in the food group of cereals and cereal products with 6.2 percent in July 2023 and vegetables, tubers plantains, cooking bananas and pulses at 19.8 percent in the same month.
Main Contributors to Food Inflation
Food had a share of 48.7 percent or 2.8 percentage points to July 2023 headline inflation in Western Visayas. Among the food groups, top contributors to food inflation during the month were:
a. cereals and cereal products with 31.7 percent share or 2.4 percentage points
b. vegetables, tubers, plantains, cooking bananas and pulses 22.5 percent share or 1.7 percentage points
c. fish and other seafood with 16.3 percent share or 1.2 percentage points
Provinces
All the six provinces in Western Visayas recorded continued downtrend in inflation rates in July 2023 from June 2023. Negros Occidental had the highest monthly inflation rate of 7.6 percent, while Guimaras had the lowest at 2.3 percent.
Among the two highly urbanized cities in the region, both exhibited continued slowdown in their monthly inflation rates. In July 2023, Iloilo City inflation was recorded at 5.7 percent from 8.5 percent in June 2023. Bacolod City inflation was noted at 6.6 percent, from 6.7 percent in the previous month. (PSA)/PN
