Inflation in Central Visayas slowed for the second consecutive month in June, but the region remained the country’s top inflation area as high food prices continued to drive up the cost of goods and services.
The Philippine Statistics Authority (PSA) reported that the region’s headline inflation rate eased to 10 percent in June from 10.8 percent in May.
Despite the slowdown, Central Visayas recorded the highest inflation rate among all regions for the 11th straight month, exceeding the national average of 6.4 percent by 3.6 percentage points.
Food prices remained the biggest contributor to the region’s elevated inflation, although increases also slowed during the month. Inflation for food and non-alcoholic beverages declined to 14.2 percent in June from 15.2 percent in May, but remained significantly higher than the national food inflation rate of 5.2 percent.
Among major commodity groups, transportation posted the sharpest slowdown, with inflation dropping to 16.8 percent in June from 21.9 percent the previous month.
Vegetables, tubers, and plantains continued to record the highest food inflation, although the rate eased to 47.6 percent from 54 percent in May.
Prices of rice, fish, and other seafood also increased at a slower pace, while sugar, confectionery, and desserts continued to post lower prices, with inflation declining further to -4.7 percent from -4.6 percent.
Meanwhile, housing, water, electricity, gas, and other fuels maintained a 4.9-percent inflation rate in June.
Other commodity groups, however, recorded faster price increases during the month.
Inflation for alcoholic beverages and tobacco rose slightly to 5.1 percent from 5 percent, while clothing and footwear increased to 4.4 percent from 4.3 percent.
Furnishings and routine household maintenance also edged higher to 7.2 percent from 7.1 percent, while health inflation accelerated to 3.7 percent from 3.4 percent.
Nationwide, inflation likewise eased for the second straight month, declining to 6.4 percent in June from 6.8 percent in May.
The Bangko Sentral ng Pilipinas (BSP) said the June inflation rate remained within its projected range of 6 percent to 7 percent but warned that price pressures continued to be elevated.
“Inflationary pressures remain strong. Global oil and fertilizer prices remain elevated in June and continue to drive domestic fuel and food prices. Rising core inflation indicates broadening price pressures and second-round effects, including higher inflation expectations,” the BSP said.
The central bank said inflation is expected to remain above its target range through 2026 and 2027 before moving closer to the 3-percent target by 2028.
Photo by Jacq Hernandez
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