Central Visayas logs low inflation in June

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CEBU CITY — A wave of price relief swept through Central Visayas in June 2025, triggering an inflation slowdown to its lowest level this year at just 0.2 percent.

Data from the Philippine Statistics Authority Central Visayas (PSA 7) showed a steep decline from May’s 0.9 percent rate and a dramatic year-on-year plunge from 4.8 percent in June 2024.

The regional slowdown was driven primarily by the easing costs of housing, water, electricity, gas, and other fuels, as well as in food and non-alcoholic beverages — two of the biggest contributors to household spending.

PSA 7 said the steady deceleration points to more breathing room for consumers still reeling from last year’s surge in prices.

Director Wilma Perante, officer-in-charge of PSA 7, said during a press briefing on July 8 that Central Visayas posted the third-lowest inflation rate among the country’s 18 regions for the month.

She said leading the pullback was the housing, water, electricity, gas, and other fuels group, which posted a 1.9 percent inflation rate in June — a steep fall from 4.0 percent in May. 

Electricity rates contributed significantly to this drop, shifting from a 4.1 percent increase in May to an 8.5 percent decline in June. 

Rentals also decreased slightly from 4.1 to 4.0 percent, while water supply inflation stood at 9.4 percent.

Also significant to the downward trend was the continued drop in food prices. Food and non-alcoholic beverages registered a deeper deflation at -2.0 percent in June from -1.3 percent the previous month. 

Prices of cereals and cereal products fell sharply by 13.8 percent, while vegetables and tubers dropped by 16.5 percent.

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time. 

A low or negative inflation rate, like what Central Visayas experienced in June, means that the cost of living is stabilizing or even decreasing, which is good news for households, especially those on tight budgets.

Despite this overall easing, some groups posted either constant or higher inflation. 

Alcoholic beverages and tobacco went up slightly to 3.0 percent, and personal care and miscellaneous goods and services rose to 2.1 percent. 

Education services remained high at 5.3 percent, driven by a 5.6 percent inflation in tertiary education. 

Household furnishings and domestic services also maintained elevated rates at 5.2 percent and 13.0 percent, respectively.

Geographically, Cebu province recorded a deflation of -0.8 percent in June from 0.5 percent in May, the lowest among the provinces and highly urbanized cities. 

Cebu City and Mandaue City both posted 0.3 percent, while Lapu-Lapu City had 0.6 percent. Bohol registered a relatively stable 1.5 percent.

For the bottom 30 percent of income households, inflation sank even deeper to -3.0 percent in June from -1.9 percent in May. 

This group saw the largest relief from falling food prices, which posted a deflation of -6.7 percent, including a 19.0 percent drop in cereals and a 17.9 percent decline in vegetables. 

Inflation for this group averaged just 0.4 percent in the first half of 2025, far below the 2.0 percent regional average.

Transport prices also eased for low-income households, dropping to 2.9 percent from 4.3 percent, as sea passenger transport costs decreased. 

Housing and fuel-related prices declined to 0.3 percent from 0.7 percent, with liquefied hydrocarbon prices easing slightly.