By Mariela Angella Oladive
Western Visayas’ headline inflation rate eased to 2.7% in February 2025, down from 3.6% in January, according to the Philippine Statistics Authority Regional Statistical Services Office VI (PSA RSSO VI).
The latest rate matches the figure from the same period last year and remains higher than the national average of 2.1%.
Despite the decline, the region ranks second among areas outside the National Capital Region (NCR), tying with the Bicol Region.
Cagayan Valley Region recorded the highest inflation at 3.9%, while SOCCSKSARGEN had the lowest at 0.3%. In January 2025, Western Visayas ranked third among regions outside NCR.
Main Drivers
Statistical Specialist II Miguel S. Gallego highlighted that the downtrend was primarily influenced by slower growth in the Food and Non-Alcoholic Beverages index, which registered a 2.4% inflation rate, down from 3.4% in January.
Housing, Water, Electricity, Gas, and Other Fuels index followed, declining from 3.6% to 2.9%. Restaurants and Accommodation Services also saw a decrease, with inflation dropping from 6.0% to 3.9%.
Other commodities that experienced slower inflation rates include:
- Clothing and Footwear: 4.0% from 4.4%
- Transport: 1.0% from 2.2%
- Information and Communication: 0.5% from 0.6%
- Personal Care and Miscellaneous Goods and Services: 2.7% from 2.9%
However, higher inflation was observed in:
- Alcoholic Beverages and Tobacco: 5.0% from 4.1%
- Furnishings, Household Equipment, and Routine Household Maintenance: 4.4% from 4.3%
- Health: 2.5% from 2.4%
- Recreation, Sport, and Culture: 3.2% from 3.1%
Food Inflation Trends
The decline in food inflation in the region was primarily driven by slower price growth in key food items:
- Cereals and Cereal Products: 1.0% from 3.3%
- Fish and Other Seafood: -0.3% from 0.9%
- Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses: 5.6% from 6.7%
- Milk, Other Dairy Products, and Eggs: 4.2% from 4.3%
- Fruits and Nuts: 2.3% from 3.3%
However, some food groups experienced increased inflation, including:
- Meat and Other Parts of Slaughtered Land Animals: 5.8% from 5.2%
- Oils and Fats: -0.6% from -1.1%
- Sugar, Confectionery, and Desserts: -0.6% from -1.5%
- Ready-Made Food and Other Food Products, n.e.c.: 4.3% from 4.2%
Impact on Low-Income Households
The inflation rate for the Bottom 30% Income Households in the region also dropped to 2.4% from 3.4%. This decrease was mainly attributed to slower growth in Food and Non-Alcoholic Beverages (1.8% from 3.2%), Housing, Water, Electricity, Gas, and Other Fuels (3.4% from 5.1%), and Transport (-0.8% from 0.6%).
Provincial and City Performance
Most provinces in the region experienced a downtrend in inflation rates, except Capiz, which saw an increase. Iloilo recorded the highest monthly inflation rate at 4.5%, while Antique registered the lowest at 0.0%.
For highly urbanized cities, Iloilo City saw inflation decelerate to 3.7% from 5.1%, while Bacolod City maintained a steady 3.3%.
Heat Index and Inflation
When asked about the potential impact of rising temperatures on inflation in the coming months, Gallego noted that while the summer season may drive up household electricity consumption due to increased use of electric fans and air conditioning units, the effect on inflation would depend more on the power generation side and actual household spending.
“In my personal view, while spending on electricity may increase during the summer season, the impact on inflation will largely depend on power generation rates and household consumption patterns,” he explained.
