ILOILO City – Western Visayas recorded its lowest inflation rate in nearly a year and a half, as consumer prices grew by just 1.5 percent in May 2025, down from 1.8 percent in April, according to the Philippine Statistics Authority (PSA).
Inflation refers to the rate at which prices for goods and services rise over time.
A lower inflation rate means prices are increasing more slowly, which can help consumers better afford daily essentials. On the other hand, high inflation erodes purchasing power and puts pressure on household budgets – particularly for low-income families.
The PSA attributed the slowdown to weaker price increases in food and non-alcoholic beverages and continued deflation in the transport sector.
“This is the most subdued inflation we’ve seen since early 2024,” said Miguel Gallego, Statistical Specialist II at the PSA Regional Statistical Services Office 6. “Transport costs dropped by 3.0 percent, and food prices—though still rising—grew only 0.3 percent.”
The regional average inflation from January to May now stands at 2.6 percent, significantly lower than the 4.3 percent recorded in May 2024.
Despite the overall downtrend, certain commodity groups posted faster price increases. These include furnishings and household maintenance (5.8%), alcoholic beverages and tobacco (4.9%), and housing, water, electricity, gas, and other fuels (4.7%).
“The housing and utilities group alone contributed 0.78 percentage points to the overall inflation, making it the top contributor for the month,” Gallego added.
While most of the region saw easing prices, Iloilo City saw a slight uptick, with inflation inching up to 3.3 percent from 3.2 percent in April. This was also driven by higher housing and utility costs, which rose by 5.8 percent.
Notably, inflation for the region’s bottom 30% income households dropped sharply to 0.3 percent from 2.8 percent the previous month, as food prices for this sector registered a -1.0 percent inflation rate.
The PSA underscored the importance of tracking inflation data to guide policymaking, especially in mitigating the impact on low-income and vulnerable consumers./PN
