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CEBU CITY, Philippines — Mandaue City’s inflation rate further quickened to 7.4 percent in June 2024, still the highest in Cebu, according to the Philippine Statistics Authority in Central Visayas (PSA-7).
In an inflation report released on Monday, July 15, PSA Cebu chief statistical specialist Melchor Bautista said the city’s inflation rate increased from 7.3 percent in May 2024 to 7.4 percent last month.
This is the seventh consecutive time that Mandaue City’s inflation rate ranked highest among the highly urbanized cities (HUCs) including Cebu Province this year.
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Meanwhile, the Province of Cebu saw its inflation rate rise to 3.5 percent in June 2024, up from 2.3 percent in May 2024.
In June 2024, inflation rates increased in various Highly Urbanized Cities (HUCs) like Cebu City, rising to 5.9 percent from 5.7 percent in May 2024. Lapu-Lapu City also saw an increase to 6.5 percent in June from 5.8 percent in May.
According to Bautista, Mandaue City’s inflation rise in June 2024, reaching 17.4 percent from 16.6 percent in May, was mainly driven by higher costs for housing, water, electricity, gas, and fuels. Other contributing factors included food and non-alcoholic beverages at 6.0 percent (up from 5.7 percent in May), and household furnishings and maintenance at 3.7 percent (up from 3.4 percent in May).
Inflation reflects the rate at which prices rise over time, indicating a decrease in the purchasing power of the peso, according to the PSA.
Bautista further noted that in Cebu Province, the main drivers of inflation in June 2024 were food and non-alcoholic beverages at 7.8 percent, while housing, water, electricity, gas, and fuels decreased to 3.5 percent. In Cebu City, significant drivers included food and non-alcoholic beverages at 53.5 percent, and housing, water, electricity, gas, and fuel at 25.6 percent. For Lapu-Lapu City, inflation was driven by restaurants and cafes (31.6 percent), rentals (24.3 percent), rice (17.3 percent), pork (9.3 percent), and road transport (5.0 percent).
Bautista attributed the rise in vegetable prices to hot weather in May and June, which impacted vegetable supplies. The PSA official reassured that prices of these goods would likely decrease in the coming months, especially those that are easier to harvest. /clorenciana