CENTRAL Visayas’ inflation rate decreased to 4.5 percent in July 2024, down from 4.8 percent in June 2024, according to the Philippine Statistics Authority (PSA) 7.
PSA 7 Director Ariel Florendo attributed the decline to lower prices in electricity, rent, sea transport, and restaurant services.
Florendo said main drivers of the decrease were slower inflation rates in major commodity groups: housing, water, electricity, gas and other fuels (0.3 percent); transport (2.0 percent); and restaurants and accommodation services (3.9 percent).
Inflation is the sustained increase in the general price level of goods and services in an economy over a period of time.
In a press conference in Cebu City on Friday, Aug. 9, 2024, Florendo explained that changes in inflation reflect the speed at which the average price level of goods and services in the region rises or falls over a certain period. This serves as one of the bases for government agencies and private sectors to implement policies and measures to curb rapid price surges.
Despite the drop, July’s inflation rate remains higher than figures recorded from January to April 2024.
Food and non-alcoholic beverages continue to be the main contributors to the July inflation, with an 8.6 percent increase.
Florendo said the increase was driven by the faster rise in the prices of cereals and cereal products, meat and other slaughtered animals, particularly pork, whether fresh, chilled or frozen, as well as vegetables and tubers, especially fresh or chilled fruit-bearing vegetables.
Other significant contributors include restaurants and accommodation services at 3.9 percent and transport at 2.0 percent.
Compared to the previous year, Central Visayas’ July 2024 inflation rate is slightly higher than the 4.1 percent recorded in July 2023.
The national headline inflation increased to 4.4 percent in July 2024 from 3.7 percent in June 2024.
Florendo said Central Visayas’ average inflation from January to July 2024 stood at 3.6 percent. While Cebu and Siquijor experienced faster increases in inflation rates (both at 4.0 percent) in June, other areas saw decreases in July: Bohol (4.9 percent), Cebu City (5.3 percent), Lapu-Lapu City (6.1 percent), Mandaue City (6.2 percent), and Negros Oriental (3.4 percent).
The PSA said the changes in inflation rates indicate the pace of price level changes for goods and services in the region, serving as a basis for policy implementation by government agencies and private sectors. / EHP