ILOILO City – Western Visayas has slipped into deflation, posting a -0.3 percent inflation rate in August 2025 as plunging housing and power costs pulled consumer prices to their lowest level since the pandemic years, the Philippine Statistics Authority (PSA) announced.
The steep drop — from 0.6 percent in July and 5.0 percent a year ago — dragged the region’s year-to-date average inflation down to 1.7 percent, compared with 6.8 percent in the same period in 2024.
“The decrease in overall inflation in August was mainly due to a negative annual growth in the Housing, Water, Electricity, Gas and Other Fuels commodity group,” said PSA Region 6 director Nelida Amolar.
She noted the drastic swing from 19.8 percent in July to -12.8 percent in August, with electricity rates and housing rentals leading the plunge.
Food prices also softened, with food and non-alcoholic beverages slowing to 1.7 percent from 2.3 percent in July.
Alcoholic drinks and tobacco eased to 5.0 percent from 6.6 percent, while transport registered a milder contraction at -1.0 percent compared to -2.9 percent in July.
The hospitality sector bucked the trend, with restaurants and accommodation services rising to 4.1 percent from 3.4 percent.
Provincial figures revealed stark contrasts. Guimaras recorded the highest inflation at 3.0 percent, followed by Negros Occidental (2.4 percent) and Antique (2.1 percent).
Iloilo Province posted -1.1 percent, while Aklan and Capiz both registered -0.5 percent, pulling the regional average into negative territory.
Western Visayas ranked fourth among regions with the lowest inflation, outperforming the national average of 1.5 percent. Only three regions posted lower rates, while Central Visayas logged the highest inflation nationwide.
Amolar cautioned against complacency.
“With -0.3 percent, the region ranked fourth with the lowest inflation in the Philippines,” she stressed, warning that energy and housing costs remain volatile and could quickly swing prices upward.
For Ilonggo households, the reprieve means lighter electricity bills and slower food price hikes. But economists warn that global oil price shocks, erratic weather, and supply chain disruptions could just as easily erase these gains./PN
