WV Inflation Slows Down to 1.5% in May 2025

By Mariela Angella Oladive

Western Visayas recorded a 1.5 percent inflation rate in May 2025, down from 1.8 percent in April, according to the Philippine Statistics Authority Regional Statistical Services Office VI (PSA RSSO VI).

This is the first official inflation report following the creation of the Negros Island Region (NIR), which separated Negros Occidental and Bacolod City from Western Visayas.

“Among the 17 regions [outside the National Capital Region], Western Visayas ranked 8th highest in inflation in May at 1.5 percent,” PSA Statistical Specialist II Miguel Gallego said during a press conference on June 13.

The highest inflation rate was recorded in the Cordillera Administrative Region (CAR) at 2.5 percent, while the lowest was in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at -1.6 percent.

The region’s ranking dropped from its previous positions of second or third highest prior to the regional realignment.

Gallego attributed the slower inflation mainly to lower prices in the Food and Non-Alcoholic Beverages group, which registered 0.3 percent inflation in May, down from 0.7 percent in April.

Transport costs also declined further, registering -3.0 percent from -2.3 percent the previous month.

However, some commodity groups posted higher inflation rates in May.

Housing, Water, Electricity, Gas, and Other Fuels increased to 4.7 percent from 4.6 percent.

Furnishings and Household Equipment rose to 5.8 percent from 5.7 percent.

Alcoholic Beverages and Tobacco climbed to 4.9 percent from 4.7 percent.

Recreation, Sport and Culture surged to 4.0 percent from 3.0 percent.

Health went up to 2.3 percent from 2.0 percent.

Personal Care and Miscellaneous Goods rose to 2.7 percent from 2.4 percent.

Housing and utilities contributed the largest share to overall inflation at 52.1 percent or 0.78 percentage point.

Furnishings and household maintenance followed with a 13.1 percent share or 0.20 percentage point, and Alcoholic Beverages and Tobacco contributed 11.3 percent or 0.17 percentage point.

Food inflation turned negative in May, dropping to -0.1 percent from 0.5 percent in April, a sharp decline from 7.9 percent in the same month last year.

The food group contributed -0.04 percentage point to the overall regional inflation rate.

Among provinces, Capiz and Iloilo posted lower inflation rates in May compared to April.

Iloilo had the highest inflation at 2.8 percent, while Antique recorded the lowest at -1.3 percent.

In Iloilo City, inflation rose slightly to 3.3 percent from 3.2 percent.

Gallego cautioned that while prices are relatively stable, the rainy season may introduce risks.

“If it’s just light to moderate rains, the effect might not be significant,” he said.

“But strong typhoons and weather disruptions could damage crops, often leading to spikes in food prices, like for vegetables. The fisheries sector may also be affected,” he added.

From the 2018 base year to May 2025, prices of goods and services in the region have increased by 26.4 percent.

This means a basket of goods worth PHP100 in 2018 would now cost PHP126.40.

In terms of purchasing power, PHP1 in 2018 is now equivalent to 79 centavos.