Inflation Rate (IR) in Eastern Visayas drops to 2.4 percent in July 2023

By PSA-8
August 8, 2023

TACLOBAN CITY – The Inflation Rate (IR) in Eastern Visayas slowed down further to 2.4 percent in July 2023 from 3.3 percent in June 2023. This is the eight consecutive month of deceleration in the regional IR and the lowest since December 2020 (Table 2). The regional IR was lower than the 4.7 percent national IR in July 2023. The region’s average IR from January to July 2023 stood at 4.8 percent. In July 2022, the regional IR at 7.5 percent was higher than the rate during the reference period (Table 1).

Among the 13 commodity groups, the sustained downtrend of the regional IR during the month was mainly brought about by the heavily weighted food and non-alcoholic beverages, which recorded a lower IR of 5.0 percent in July 2023 from 6.0 percent in June 2023. Also contributing to the downward trend of the regional IR is the housing, water, electricity, gas and other fuels commodity group, which registered a deflation of -1.4 percent in July 2023 from 1.0 percent IR in June 2023. The third main source of deceleration was restaurant and accommodation services with IR recorded at 3.7 percent in July 2023 from 4.3 percent in June 2023.

In addition, lower IRs compared with their previous month’s IRs were noted in the following commodity groups:

a. Clothing and footwear, 1.4 percent from 1.7 percent;

b. Personal care, and miscellaneous goods and services, 3.9 percent from 4.1 percent;

c. Alcoholic beverages and tobacco, 8.4 percent from 8.6 percent; and

d. Information and communication, 0.7 percent from 0.8 percent.

On the other hand, IR for health increased to 2.9 percent in July 2023, from 2.6 percent in June 2023. Furnishings, household equipment and routine household maintenance also exhibited faster IR at 4.7 percent during the month from 4.5 percent in June 2023. The IR for recreation, sport and culture inched up to 1.9 percent during the month in review, from 1.8 percent in June 2023. Transport continued to register deflation but at slower rate of -6.1 percent from -6.4 percent in June 2023.

The rest of the commodity groups either retained their previous month’s IRs or had zero percent growths.

The IR for food index continued to decrease for the fourth consecutive month at 5.1 percent in July 2023. In the previous month, IR for food was recorded at 6.0 percent, while it was 8.5 percent in July 2022.

The decreased IR for food index was primarily influenced by the annual price decrease in meat and other parts of slaughtered land animals at -4.0 percent in July 2023, from -1.4 percent in June 2023. This was followed by slower IR recorded in fruits and nuts at 5.2 percent in July 2023, from 8.5 percent in June 2023. Flour, bread and other bakery products, pasta products, and other cereals also contributed to the downtrend of the IR for food with IR at 10.5 percent in July 2023, from 12.0 percent in the previous month.

Lower IRs were also noted in the following food groups during the month in review:

a. Sugar, confectionery and desserts, 25.2 percent from 30.0 percent;

b. Milk, other dairy products and eggs, 9.0 percent from 10.2 percent;

c. Ready-made food and other food products not elsewhere classified (n.e.c.), 6.7 percent from 7.2 percent;

d. Oils and fats, 7.4 percent from 8.3 percent; and

e. Corn, 2.9 percent from 3.6 percent.

On the other hand, vegetables, tubers, plantains, cooking bananas and pulses registered higher IR at 9.0 percent in July 2023, from 8.4 percent in June 2023. Higher IR was also noted in fish and other seafood at 7.5 percent from 7.3 percent. Meanwhile, rice retained its previous month’s IR at 3.4 percent.

Inflation Rate by Region

All regions registered lower IRs in July 2023, except for NCR, which retained its previous month’s IR at 5.6 percent. Among the regions, Eastern Visayas’ IR at 2.4 percent ranked the lowest during the month in review. On the other hand, Western Visayas registered the highest IR at 5.8 percent, followed by MIMAROPA and NCR at 5.7 percent and 5.6 percent, respectively (Table 3).

Inflation Rate by Province

Relative to their IRs in June 2023, all provinces recorded lower IRs in July 2023, except for Samar, which posted a higher IR during the reference month. Among the provinces, Eastern Samar posted the highest IR at 5.5 percent in July 2023. Samar’s IR ranked second at 3.9 percent, followed by Leyte at 2.0 percent; Northern Samar at 1.7 percent; and Southern Leyte at 1.2 percent. The lowest IR was noted in Biliran at 1.1 percent (Table 4).

Meanwhile, IR for Tacloban City, the lone Highly Urbanized City (HUC) in the region, decelerated further to 1.1 percent in July 2023, from its 1.5 percent IR last month (Table 4).