PRICES ROLL BACK: W. Visayas posts deflation, aided by gov’t interventions

By Rjay Zuriaga Castor

Western Visayas recorded a deflation rate of -0.3 percent in August 2025—the first in six years—possibly reflecting the impact of sustained government interventions aimed at stabilizing prices, according to the Philippine Statistics Authority (PSA-6).

The last time the region registered deflation was in October 2019 at -0.1 percent, with a prior instance in May 1987 at -2.9 percent.

PSA-6 Director Nelida Amolar said Western Visayas posted the fourth-lowest inflation rate among all regions, compared to the national average of 1.5 percent in August.

She noted that the region’s inflation has steadily declined since January 2025, when it was recorded at 4.0 percent.

Amolar attributed the sustained downtrend to government programs such as Kadiwa Centers and other market support initiatives that helped lower food prices.

“In my opinion, prices are slowly going back,” she said.

“It’s not yet fully back to pre-pandemic levels since we had a negative inflation (-0.1 percent) in October 2019 […] but the data show a gradual return.”

“This is good news for us, especially with the ongoing interventions of government agencies and the present administration […] With this, we are happy that it is gradually decreasing,” she added.

The region’s August deflation follows a 0.6 percent inflation rate in July and is a steep drop from the 5.0 percent inflation recorded in August 2024.

From January to August 2025, the region’s average inflation rate stood at 1.7 percent.

PSA-6 data indicated that the decline in Western Visayas’ overall inflation was primarily driven by lower housing and utility costs and a sharper drop in food prices.

The Housing, Water, Electricity, Gas and Other Fuels index posted a deflation of -1.8 percent in August, reversing the 3.5 percent increase recorded in July.

This group alone accounted for 85.3 percent of the region’s overall inflation decline.

Electricity saw the steepest drop, with a deflation rate of -16.2 percent compared to 1.3 percent in July.

Food and Non-Alcoholic Beverages also dragged inflation further down, with its index falling to -1.8 percent from -1.5 percent in July.

Cereals and cereal products registered a deeper deflation at -13.0 percent from -10.5 percent in the previous month.

Aklan, Guimaras buck inflation downtrend

All provinces in Western Visayas, except Aklan and Guimaras, recorded lower inflation rates in August 2025 compared to July.

Aklan’s inflation rose to -1.4 percent from -2.7 percent in July, while Guimaras posted -0.2 percent from -0.5 percent.

Iloilo recorded the highest inflation in the region among provinces at 0.2 percent, while Antique registered the lowest at -3.2 percent.

In Iloilo City, inflation slowed to 1.7 percent in August from 3.7 percent in July, but remains the highest in the region.

Among the Bottom 30 Percent Income Households, inflation fell faster to -2.6 percent in August from -1.1 percent in July. This marked a sharp reversal from the 6.5 percent inflation rate recorded in August 2024.

PSA-6 said the downtrend for low-income households was driven mainly by the steep decline in the Housing, Water, Electricity, Gas and Other Fuels index, which dropped to -7.7 percent from 1.4 percent in July.

The Food and Non-Alcoholic Beverages index also contributed, registering -3.7 percent from -3.0 percent in the previous month.