Utilities, fuel slow down WV inflation in July 2024

By Mariela Angella Oladive

The inflation rate in Western Visayas dropped to 4.8 percent in July 2024, a 0.1 percent decrease from the 4.9 percent recorded in June.

The slower rate in price escalation represents a significant decline from the 5.8 percent rate reported in the same period last year, according to the latest data from the Philippine Statistics Authority (PSA) Region 6.

PSA 6 Statistical Specialist II Miguel Gallego attributed the decrease to slower growth in several key sectors, particularly in the Housing, Water, Electricity, Gas, and Other Fuels commodity group, which saw a notable decline in inflation.

“The decline in the July 2024 inflation rate was primarily driven by slower growth in several key sectors. Notably, the Housing, Water, Electricity, Gas, and Other Fuels commodity group experienced a significant decrease in inflation, recording just 1.1 percent growth in July, down from 2.7 percent in June,” Gallego said during a press conference on Thursday, August 8.

The Housing, Water, Electricity, Gas, and Other Fuels group was a major contributor to the downtrend, accounting for 95.2 percent of the overall decrease in inflation.

Gallego noted that adjustments in electric cooperative rates across some provinces played a significant role in the decline.

“Some electric cooperatives adjusted their rates, and in some provinces, there were also increases. Since the weight is significant in Iloilo City and Iloilo Province, it somewhat offset and pulled down the rate in the region. If we look at the commodity group Housing, Water, Electricity, Gas, and Other Fuels, the electricity subgroup registered -4.0 percent, way lower than 3.0 percent last month. This meant prices were 4 percent lower. Even though we saw month-on-month increases, it is still significantly lower than last year,” he explained.

Iloilo City recorded the lowest inflation rate in the region at 1.8 percent in July from 6.1 percent in the previous month.

Similarly, the Iloilo province saw a significant decrease, with its inflation rate falling to 4.0 percent from 6.2 percent.

Gallego further cautioned that the lower inflation might not persist.

“Considering the almost 96 percent share of the Housing, Water, Electricity, Gas, and Other Fuels category in the downtrend. It is possible that this August, inflation might bounce back, especially with expected increases in other commodities,” he added.

He also noted that the Health sector contributed to easing inflation in the region, with a reduced rate of 2.5 percent from 2.7 percent.

In contrast, some commodity groups experienced rising inflation rates. Education services jumped to 11.5 percent from 7.8 percent, while transport costs increased to 4.1 percent from 3.2 percent. Restaurants, accommodation, and personal care services also saw modest inflation increases.

Meanwhile, food inflation remained steady at 7.4 percent. However, notable increases were seen in the prices of meat and other parts of slaughtered land animals, which saw inflation rise to 15.3 percent.

Despite the easing in July, Western Visayas remains among the regions with the highest inflation rates in the country, ranking 7th overall.

Some local residents shared that they are not feeling the impact of the easing inflation.

“Honestly, I haven’t noticed much of a difference. Prices for basic goods are still high, and I’m still struggling to keep up with the cost of supplies,” said Angielyn Paderna, a store attendant at a convenience store in the city, in an interview with Daily Guardian.

Elena, an eatery owner, echoed this sentiment.

“The prices of goods are still high, and so is the cost of transportation. Sometimes, when it rains and you have heavy items to carry, you can’t avoid taking a taxi. The flagdown rate for taxis is now 50 pesos. As for my electricity bill, it’s still the same,” she shared.