Inflation in Guimaras province eased to 5.5% in August 2024, down from 6.8% in July, driven primarily by declining prices of food and gasoline, according to the latest report from the Philippine Statistics Authority (PSA).
The province had experienced rising inflation in recent months, but a slowdown in key sectors, particularly food and transport, helped reverse the trend.
“The lower inflation in August was largely due to slower price increases in food, especially rice, which recorded a 23.8% inflation, and in transport, particularly gasoline, which saw a deflation of -10.4%,” said Nelida B. Losare, Provincial Statistics Officer.
Food and non-alcoholic beverages saw a significant decline in inflation, down to 7.0% from 10.7% in July.
Transport, another crucial sector, showed a shift from a 4.9% increase in July to a -1.3% deflation in August. These two sectors accounted for 79.5% and 18.4%, respectively, of the overall inflation downtrend.
Contributing Factors to the Downtrend
Losare highlighted that lower inflation in health commodities also played a role in the decrease. The inflation rate for vitamins and minerals dropped to 7.0%, down from 7.7% in the previous month.
“These changes show the influence of core sectors like food and transport in shaping the inflation outlook,” Losare added.
Additionally, commodity groups such as Alcoholic Beverages and Tobacco, Furnishings and Household Equipment, and Personal Care also saw a decline in inflation, further contributing to the overall downtrend.
Rising Inflation in Key Sectors
Despite the overall slowdown, inflation accelerated in other sectors. Housing, Water, Electricity, Gas, and Other Fuels saw a sharp rise to 6.2% from 0.8% in July, while Clothing and Footwear increased to 2.1% from 1.7%.
Notably, Recreation, Sport, and Culture saw its inflation rise to 11.8%, up from 10.7% the previous month.
Core Inflation and Purchasing Power
Core inflation, which excludes volatile items like food and energy, also dropped to 3.0% in August, down from 3.6% in July. This reflects a more stable inflation environment when external shocks are removed from the equation.
“The inflation rate reflects the cost of purchasing a basket of goods relative to the same period in previous years,” Losare explained.
“In Guimaras, a typical household needed PHP 1,332 in August 2024 to buy the same goods and services that cost PHP 1,000 in 2018.”
Additionally, the Purchasing Power of the Peso (PPP) remained stable at 0.75, meaning that one peso in 2018 is now worth 75 centavos.
However, this represents a slight devaluation from 0.79 PPP recorded in August 2023.
