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CEBU CITY, Philippines — The Philippine Statistics Authority in Central Visayas (PSA-7) reported a consistent inflation rate in the region for the month of April 2024.
During the inflation report on Wednesday, May 15, PSA-7 Director Ariel Florendo said that the inflation rate in Central Visayas for April had remained steady at 3.2 percent, the same as March 2024’s rate.
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Florendo said that this would indicate that there had been “no movement” on the average prices of goods, commodities, and services.
The regional director also pointed out that a consistent inflation rate would contribute to macroeconomic stability, indicating minimal fluctuation in the average prices of goods and services.
“The inflation with the stability, that’s good because stable man siya (it is already stable)… The fact that it is stable, that is good for the economy, especially Region 7,” Florendo said.
Inflation refers to the rate of price increase over a specific period of time which is also equivalent to a decline in the purchasing power of the peso, according to the PSA.
The major contributors to April’s inflation rate were the food and non-alcoholic beverages with 61.5 percent share, restaurants and accommodation services with 12.4 percent share; and housing, water, electricity, gas and other fuels with 8.4 percent share.
Food inflation in Central Visayas increased to 5.2 percent in April 2024 from 4.2 percent in March 2024.
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The main contributors to food inflation cereals and cereal products, which include rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 67.2 percent share; meat and other parts of slaughtered land animals with 19.1; and milk, other dairy products and eggs with 10.2 percent share.
On top of that, the main drivers of acceleration of food inflation were vegetables, tubers, plantains, cooking bananas and pulses at 1.7 percent in April from a -9.5 percent in March. This was followed by fish and other seafood with an inflation rate of -2.1 percent from -3.6 percent in March 2024.
The third main driver to the food inflation acceleration were cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals with 9.5 percent in April from 9.3 percent in March.
Noting the vegetable group was the top driver for food inflation acceleration, Florendo believes that the El Niño phenomenon has contributed to it.
“That could be the cause [the El Niño],” Florendo said.
Last month, some vendors at the Carbon Public Market in Cebu City told CDN Digital that as El Niño continues to affect their crops, they are likely to increase the prices of their products because of the low supply.
Due to the water scarcity and weeks without rain in Cebu City, farmers struggled to keep their crops healthy, leading to price increases.