Central Visayas shows 0.8 % rise of inflation rate in June 2024

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CEBU CITY, Philippines — From 4.0 percent, the inflation report for Central Visayas shows another 0.8 rise in June 2024.

In a data dissemination forum on Friday, July 12 in Cebu City, Philippine Statistic Authority Central Visayas (PSA-7) Director, Engineer  Ariel Florendo, reported that the overall inflation for Central Visayas increased to 4.8 percent in June 2024 from 4.0 percent in May 2024.

The regional director said that the top three main contributors to the regional inflation were food and non-alcoholic beverages at 62.2 percent, housing, water, electricity, gas, and other fuels at 13.7 percent, and restaurants and accommodation services at 7.8 percent.

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The increased trend in the inflation rate was due to the fast increase of food and non-alcoholic beverages as well as the index of housing, water, electricity, gas, and other fuels.

Among the contributors, the main drivers for the upward trend were food and non-alcoholic beverages with 7.6 percent, and housing, water, electricity, gas, and other fuels with 2.7 percent.

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.

Main drivers for food inflation

Moreover, Florendo also reported an acceleration in the food inflation rate for the region, which rose to 8.0 percent in June 2024 compared to 6.7 percent in May 2024.

The top three drivers to the upward trend in the region’s food inflation were reported to be cereals and cereal products at 16.5 percent in June 2024 compared to 12.3 percent in May 2024, vegetables, tubers, plantains, cooking bananas and pulses at 17.0 percent in June 2024 to the 11.4 percent in May 2024, and meat and other parts of slaughtered land animals at 7.3 percent in June 2024 compared to the 6.8 percent in May 2024.

According to PSA-7, the main contributors to the food inflation during the month were cereals and cereal products at 75.6 percent share, meat and other parts of slaughtered land animals with 13.9 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 13.6 percent share.

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Florendo said that the increase in food inflation, especially with vegetables, tubers, plantains, cooking bananas, and pulses.

According to an official from the Department of Agriculture here (DA-7), they can still attribute the inflation of prices of the crops to the impacts of the El Niño phenomenon, a factor that was also considered for the increase of prices of some goods and commodities in the previous month.

The El Niño phenomenon has caused the prices of the crops to go high since the extreme heat affected the crop production.

This meant that the demand was high and the supply almost could not reach this demand, said Elvin Milleza of DA-7.

In the economics’ view, the increasing inflation rate is good for the business sector, said Melchor Bautista, PSA Cebu’s chief statistical specialist in a previous interview.

However, it would be unfortunate for the consumers because it would mean that they would have to pay more than the amount of the items they would usually buy.