Bacolod inflation hits 7.3%, outpaces Negros Occidental

BACOLOD CITY — Inflation accelerated in both Bacolod City and Negros Occidental in July 2026, with price pressures particularly severe for low-income households as food, housing, utilities, and other basic expenses became more costly, Philippine Statistics Authority data showed.

Bacolod’s headline inflation quickened to 7.3% in July from 7.1% in June and just 0.1% in July 2025, putting the city above the 6.2% national rate and the Negros Island Region’s 5.6%.

Negros Occidental’s inflation rose to 4.6% from 3.5% in June and 0.5% a year earlier, although it remained below both the national and regional rates.

The sharper concern for household welfare is evident among the bottom 30% of income earners, whose spending is more heavily concentrated on essentials and who have less room to absorb sudden price increases.

Inflation for Bacolod’s bottom 30% income households reached 8.2% in July, up from 7.8% in June and a reversal from the 1.1% deflation recorded in July 2025.

For the bottom 30% in Negros Occidental, inflation accelerated to 4.4% from 3.0% in June after prices had declined 0.2% year on year in July 2025.

The figures indicate that lower-income Bacolod households faced faster price increases than the city population as a whole, putting additional pressure on budgets for food, shelter, utilities, transportation, health care, and other necessities.

For all income households, the Philippines posted 6.2% inflation in July, compared with 6.4% in June and 1.4% in July 2025.

The national year-to-date inflation rate through July stood at 5.0%.

The Negros Island Region recorded 5.6% inflation in July, up from 4.9% in June and 0.5% in July 2025.

The region’s year-to-date inflation averaged 3.4%.

Negros Occidental’s year-to-date inflation averaged 2.4%, while Bacolod’s stood at 4.7%.

Among the bottom 30% of income households nationwide, inflation reached 8.2% in July from 8.0% in June, compared with 0.8% deflation in July 2025.

National inflation for the bottom 30% averaged 5.9% from January through July.

The Negros Island Region’s bottom 30% inflation increased to 5.6% from 4.8% in June after a 0.6% decline in July 2025.

Its year-to-date rate for the lowest-income households stood at 2.8%.

Negros Occidental posted a 1.7% year-to-date inflation rate for the bottom 30%, while Bacolod recorded 4.3%.

In Negros Occidental, food and nonalcoholic beverages were the biggest contributor to July’s headline inflation, with the group’s annual rate accelerating to 3.1% from 1.7% in June.

The category accounted for 44.5% of the province’s July inflation.

Within that category, food inflation rose to 2.9% from 1.3% and accounted for a 29.4% share in the acceleration of inflation.

Housing, water, electricity, gas, and other fuels was the second-largest contributor in the province, with inflation accelerating to 3.6% from 0.9%.

The category contributed 32.8% to overall July inflation.

Actual rentals for housing rose 3.5% year on year in July from 0.2% in June and accounted for a 12.3% share in the acceleration.

Furnishings, household equipment, and routine household maintenance was the third-largest contributor, with inflation rising to 12.2% from 9.4% and accounting for 6.6% of the province’s headline rate.

Other commodity groups that posted faster inflation in Negros Occidental included alcoholic beverages and tobacco at 8.5% from 6.8%.

Clothing and footwear inflation increased to 7.7% from 7.5%.

Health inflation accelerated to 10.7% from 8.6%.

Information and communication rose to 2.7% from 2.1%.

Recreation, sport, and culture inflation climbed to 13.5% from 12.7%.

Education services remained in deflation but improved to negative 3.5% from negative 9.2%.

Personal care and miscellaneous goods and services edged up to 5.6% from 5.5%.

Some categories provided modest relief in Negros Occidental.

Transport inflation eased to 7.8% from 8.7%, while restaurants and accommodation services slowed to 3.9% from 5.7%.

Financial services inflation was unchanged at 0.0%.

The province’s monthly inflation pattern also showed a rapid pickup during 2026, from 0.7% in January to 0.3% in February and 0.0% in March.

Inflation then accelerated to 3.2% in April and 4.2% in May before easing to 3.5% in June and rising again to 4.6% in July.

Average inflation in Negros Occidental from January through July was 2.4%.

In Bacolod, housing, water, electricity, gas, and other fuels was the largest contributor to overall inflation.

Inflation for the category rose to 8.1% in July from 7.1% in June and accounted for 53.8% of the city’s headline inflation.

Within that group, electricity, gas, and other fuels inflation accelerated to 19.2% from 15.2%, accounting for a 22.8% share in the acceleration of Bacolod’s inflation.

Food and nonalcoholic beverages ranked second among Bacolod’s contributors, with inflation rising to 6.2% from 6.0%.

The category accounted for 15.6% of headline inflation.

Food inflation itself reached 6.1% in July from 6.0% in June, accounting for a 28.2% share in the acceleration.

Health was the third-largest contributor, with its inflation rate rising to 2.8% from 1.6% and accounting for 10.2% of Bacolod’s overall inflation.

Bacolod also recorded faster inflation in alcoholic beverages and tobacco at 8.4% from 7.7%.

Furnishings, household equipment, and routine household maintenance increased to 9.7% from 9.5%.

Information and communication accelerated to 2.5% from 1.9%.

Restaurants and accommodation services increased to 10.1% from 9.6%.

Several Bacolod categories recorded slower annual increases.

Clothing and footwear eased to 10.2% from 10.3%.

Transport inflation slowed slightly to 14.5% from 14.6%.

Recreation, sport, and culture eased to 5.2% from 5.4%.

Education services fell 7.2% year on year, compared with a 2.3% decline in June.

Personal care and miscellaneous goods and services slowed to 4.6% from 5.1%.

Financial services remained unchanged at 0.0%.

Price pressures were also pronounced among Negros Occidental’s bottom 30% income households.

Food and nonalcoholic beverage inflation for the group accelerated to 3.0% from 1.4% and contributed 38.6% to the acceleration of inflation.

Alcoholic beverages and tobacco inflation for the province’s bottom 30% increased to 9.5% from 7.3% and accounted for 10.9% of the acceleration.

Food and nonalcoholic beverages accounted for 57.9% of overall July inflation among the province’s bottom 30%.

Housing, water, electricity, gas, and other fuels, which accelerated to 2.9% from negative 0.6%, accounted for another 31.2%.

The concentration of inflation in food and housing is significant because these necessities generally take up a larger portion of poorer households’ budgets, leaving fewer resources available for health, education, savings, and unexpected expenses.

The situation was more acute for Bacolod’s bottom 30% income households.

Food and nonalcoholic beverage inflation accelerated to 8.0% from 7.6%, accounting for 47.1% of the acceleration in inflation.

Housing, water, electricity, gas, and other fuels inflation for Bacolod’s lowest-income group rose to 9.7% from 8.7% and accounted for 18.3% of the acceleration.

Restaurants and accommodation services increased to 10.1% from 9.6% and contributed 11.5%.

In terms of contribution to the overall July inflation rate for Bacolod’s bottom 30%, food and nonalcoholic beverages accounted for 43.5%.

Housing, water, electricity, gas, and other fuels contributed 36.9%.

Restaurants and accommodation services accounted for 9.9%.

The PSA compiles a separate consumer price index for the bottom 30% of income households using a market basket and expenditure weights that reflect the goods and services commonly purchased by lower-income families.

The consumer price index measures changes in the average retail prices of a fixed basket of goods and services relative to a base period, with the current series using 2018 as the base year.

Inflation represents the year-on-year percentage change in that index, meaning a positive rate indicates prices are higher than a year earlier.

A slower positive inflation rate does not mean prices have fallen but that they are increasing at a slower pace.

The July figures show that while inflation in Negros Occidental remained below the national average, households were facing renewed pressure from food and housing costs.

In Bacolod, where inflation exceeded the national rate and reached 8.2% among the bottom 30%, the concentration of price increases in necessities poses a greater challenge to household purchasing power and underscores the importance of policies addressing food supply, utility costs, housing expenses, and income support.