ILOILO City – Inflation in Western Visayas held steady at 0.6 percent in July 2025, unchanged from June, as declines in food prices offset increases in housing, utilities, and other sectors, the Philippine Statistics Authority (PSA) reported.
Inflation measures the rate at which the average prices of goods and services rise over time, eroding purchasing power. It is a key indicator of economic stability and directly affects the cost of living, household budgets, and business operations.
Even small changes in inflation can have significant consequences for the region’s economy, influencing wage demands, investment decisions, and policy directions.
The regional year-to-date average inflation from January to July stood at 2.0 percent, significantly lower than the 4.5 percent recorded in July 2024.
PSA data showed that the top contributors to July’s headline inflation were Housing, Water, Electricity, Gas, and Other Fuels (99.0 percent share or 0.59 percentage point), Alcoholic Beverages and Tobacco (31.4 percent share or 0.19 percentage point), and Furnishings, Household Equipment, and Routine Household Maintenance (31.2 percent share or 0.19 percentage point).
Inflation accelerated in several commodity groups, including housing and utilities (3.5 percent from 1.0 percent), restaurants and accommodation services (3.4 percent from 2.9 percent), and alcoholic beverages and tobacco (5.3 percent from 5.1 percent).
However, these gains were tempered by declines in Food and Non-Alcoholic Beverages (-1.5 percent from -0.5 percent), transport (-2.9 percent from -2.4 percent), and education services (4.1 percent from 6.2 percent).
Food inflation dropped further to -2.1 percent in July from -0.8 percent in June, driven mainly by sharper price declines in cereals and cereal products (-10.5 percent from -9.7 percent), vegetables (-4.0 percent from -0.5 percent), and slower growth in meat, fruits, and ready-made food. Cereals and cereal products alone pulled down the food index by -3.57 percentage points.
For the bottom 30 percent income households, inflation slipped to -1.1 percent from -1.0 percent in June, mainly due to steeper declines in food (-3.0 percent) and transport (-4.0 percent).
Across provinces, Iloilo posted the highest inflation rate at 1.8 percent, followed by Iloilo City at 3.7 percent. Aklan recorded the lowest at -2.7 percent. Antique was at -1.7 percent, Capiz at -0.2 percent, and Guimaras at -0.5 percent.
The PSA said the July figures reflected the combined impact of lower food prices and higher costs in key non-food items, with the housing and utilities sector emerging as the dominant upward driver of inflation in the region./PN
