ILOILO City – High real property tax (RPT) rates in Iloilo City and the unrelenting demand for cigarettes and alcoholic beverages are among the key drivers of Western Visayas’ inflation, the Philippine Statistics Authority (PSA) said.
PSA Region 6 officer-in-charge regional director Nelida Amolar said while RPT is a legitimate source of local government revenue, its rate structure can indirectly push consumer prices upward.
“This is particularly felt by business owners. Kun mataas ang RPT, ginabawi ini sang mga negosyante sa presyo sang ila produkto ukon serbisyo, kag ini naga-apekto sa inflation rate,” she explained.
She noted that higher operating costs are passed on to consumers, weakening household purchasing power and sustaining inflationary pressure.
Western Visayas posted a 0.6% headline inflation rate in July 2025 — unchanged from June and lower than the 0.9% national average — with housing, utilities, vice products, and household items as the top contributors.
Amolar stressed that tobacco and alcoholic beverages remain strong inflation drivers. Tobacco inflation rose from 6.1% in June to 6.3% in July, while alcoholic beverages increased from 4.4% to 4.7%.
“May paghulag kag nagdasig ang inflation rate sang tobacco products kag makahulubog nga ilimnon. Ini indikasyon nga mataas gihapon ang demand sini sa Western Visayas,” she said, adding that consumption patterns are rooted in cultural and social habits that are hard to change without consistent intervention.
She urged local governments to intensify awareness and health advocacy programs to curb vice consumption.
“Dapat pasangkaron pa sang mga lokal nga panguluhan ang education campaign, amo man paagi sa ordinansa,” she said, emphasizing that legislation paired with grassroots education could help mitigate both health risks and their economic impact.
From January to July 2025, the region’s average inflation eased to 2.0%, but Western Visayas still ranked eighth highest in headline inflation among all Philippine regions./PN