Inflation in Central Visayas falls in August

Inflation in Central Visayas falls in August
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TWO mothers in Moalboal, Cebu, continue to struggle financially despite the recent decline in the inflation rate.

Despite living and working far from the city, Juname Bersamera, a 22-year-old mother, still faces a high cost of living. Even with her weekly earnings of P3,000, she struggles to make ends meet while raising her four-year-old child.

“Based on what I’ve really noticed, as a student with a child, before I could still save P500 in a month. But now that I’ve finished my studies, I can’t save anymore. The money is completely used up just in time for the next paycheck. Things are really expensive now, so I don’t feel like prices have gone down at all,” she said.

Bersamera said it is still difficult to save due to rising prices of basic commodities. She also points out that transportation costs in Moalboal are high, with fares ranging from P70 for the trip from her home to her workplace.

Kimberly Libato, a 34-year-old mother of two also shared the same sentiment. Despite her husband working in the government, she finds it necessary to have a sideline business to support their children’s education.

Libato sells biko through online platforms, earning around P1,500 depending on the number of orders. However, she said that basic ingredients remain expensive, and there are fewer customers these days.

“How did I budget? I just reduced the amount of ingredients and adjusted the way I slice it. Before, I used to cut bigger pieces, but now I’ve made adjustments,” she said.

3.4 inflation

Central Visayas’ inflation rate cooled to 3.4 percent in August from 4.5 percent in July, driven by the slowdown in the prices of food and non-alcoholic beverages and transportation, the Philippine Statistics Authority-Central Visayas said Wednesday, Sept. 11, 2024.

Inflation in food and non-alcoholic beverages eased to 5.8 percent in August from 8.6 percent in July, while inflation in transportation declined to -5.5 percent in August from two percent in July.

Inflation is the rate at which the general prices of goods and services in an economy rise over time. As prices go up, the purchasing power of money decreases, meaning you can buy less with the same amount of money.

In the region, Bohol experienced the greatest relief in inflation, dropping to 2.1 percent in August from 4.9 percent in July. Negros Oriental’s inflation decreased to 2.7 percent from 3.4 percent, Cebu’s inflation fell to three percent from four percent while that of Siquijor’s declined to 3.1 percent from 4.3 percent.

PSA 7 supervising statistical specialist Felixberto Sato Jr., clarified that the prices haven’t decreased outright, but the rate of increase has slowed down. When asked about basic commodity prices, he explained that while inflation is lower, prices are still rising but at a slower pace.

Year-to-date average inflation in the region stands at 3.6 percent.

PSA 7 said the main contributors to the drop in inflation were food and non-alcoholic beverages at a 5.8 percent inflation rate with a 63.8 percent share. The housing, water, electricity, gas and other fuels logged at a 3.5 inflation rate with a 23.8 percent share and the restaurants, accommodation and services at a 3.7 percent inflation rate with a 9.5 percent share.

While inflation in the region has gone down, low-income households still face a higher inflation rate of 5.2 percent, which is above the government’s band of two to four percent, the PSA 7 said.

These households spend more on essential items like food and non-alcoholic beverages, which make up 65.6 percent of their expenses, disproportionately affecting them.

PSA 7 said despite the overall decline in inflation, food prices remain a major concern. Factors like weather, global events and supply-demand imbalances continue to influence inflation.

Increased spending

Retailer Robert Go, in a separate interview said, said the easing of inflation has led to increased disposal income for consumers, allowing them to spend even on non-essential goods, such as cosmetics, clothing, shoes, kitchenware and other merchandise, which they were reluctant to do during the inflationary period.

Go, who is the spokesperson of the Philippine Retail Association-Cebu Chapter and owner of Prince Retail chain, said this development reflects the growing confidence in the economy.

“As inflation cools, people feel more comfortable spending,” said Go, adding that this signals a return to more normal spending patterns after a period of financial restraint. / CDF,/ KOC

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