Central Visayas inflation drops in May 2025 as food prices fall

A consumer purchases an item in a store in Carbon Public Market in Cebu City. | CDN Digital File Photo by Niña Mae Oliverio

CEBU CITY, Philippines – The inflation rate in Central Visayas dropped to just 0.9 percent in May as prices of basic goods and services continued to slow down. This is the lowest it has been in over a year.

This means that, on average, prices are rising much more slowly than before, giving consumers a bit of breathing room when it comes to spending on food, utilities, and daily needs.

The latest data from the Philippine Statistics Authority in Region 7 (PSA-7) shows that the 0.9 percent inflation rate for May 2025 is lower than the 2.0 percent rate in April, and much lower than the 4.2 percent inflation recorded in May last year.

READ:

Central Visayas: Inflation rate eases in March 2025

Philippines inflation eased to 1.4% in April, lower than expected

Why is this important?

Inflation affects how far your money goes. When inflation is high, prices go up faster, and people, especially those with fixed incomes, feel the pinch.

But when inflation slows down, like it did in May, it means that prices aren’t rising as quickly, which can ease pressure on household budgets.

A 0.9 percent inflation rate means that the overall cost of goods and services in the region increased by less than 1 percent compared to the same month last year. This is considered very low and generally favorable for consumers.

Food prices went down

Prices of many food items in the region actually dropped in May. Food inflation turned negative at -1.6 percent, which means that, on average, food was cheaper than it was in May last year.

The PSA pointed out that:

– The price of corn dropped by 21.1 percent.

– Prices of vegetables, root crops, bananas, and pulses fell by 14.8 percent.

These big drops helped ease the overall cost of food, which is good news for households that spend a big portion of their budget on groceries.

Some prices are still going up

Despite the drop in food prices, other goods and services are still seeing increases. The biggest contributor to inflation in May was the Housing, Water, Electricity, Gas and Other Fuels group, which posted a 4.0 percent increase. That means many households may still be dealing with higher utility bills or rent.

Other areas where prices went up include:

Furnishings and household maintenance – 5.3 percent increase

Education services – 5.3 percent increase

Poorer households also benefit

For the bottom 30 percent of income earners, inflation was even lower at -1.9 percent in May. This means that prices were actually lower overall for the poorest families compared to the same time last year.

This was mostly because of the significant drop in food prices, which make up a large portion of expenses for lower-income households. Transport costs also rose more slowly, 4.3 percent in May compared to 9.6 percent in April.

Bigger picture

May’s inflation is part of a trend. In previous months, inflation has also been slowly declining:

March 2025: 2.4 percent

April 2025: 2.0 percent

May 2025: 0.9 percent

Nationwide, inflation in March was at 1.8 percent, the lowest in five years, according to the Bangko Sentral ng Pilipinas (BSP). Economists believe this could lead to lower interest rates in the future, which could help encourage spending and investments.

Inflation may vary per region depending on the goods and services commonly purchased in each area, PSA-7 added.

“There is a slower annual increase in transport. Prices still went up, but more slowly now,” PSA-7 supervising statistical specialist Engr. Felixberto Sato Jr. earlier explained.