Key takeaways:
- Eastern Visayas inflation rate surged to 4.3% in December 2023, rising from 3.5% in November and four percent in October.
- Food and non-alcoholic beverages were primary contributors to the inflation spike, with the food index reaching 8.7% in December, up from eight percent the previous month.
- Notable increases in rice prices, along with fruits, nuts, milk, other dairy products, eggs, and corn, were key factors in the food index rise.
- Four out of six provinces in the region recorded higher inflation rates, with Samar posting the highest rate at 6.6%.
- Despite common misconceptions, low inflation does not signify decreasing commodity prices; instead, it indicates prices are increasing at a slower rate.
The inflation rate in Eastern Visayas surged to 4.3% in December 2023, marking a significant uptick after two months of deceleration, as reported by the Philippine Statistics Authority (PSA) recently.
This latest inflation figure reflects an increase from the 3.5% recorded in November and the four percent noted in October. The primary driver of this upward trend in the regional rate was the notable rise in prices for food and non-alcoholic beverages.
Specifically, the inflation rate for the food index saw a notable increase to 8.7% in December 2023, up from eight percent the previous month. Wilma Perante, the regional director of PSA Eastern Visayas, clarified that the rise in the inflation rate for food in the period resulted from a quicker increase in the inflation rate for rice, surging from 15% in November 2023 to 20.5% in the month. This trend was further fueled by increased rates in fruits, nuts, milk, other dairy products, eggs, and corn.
Contributing to the inflation surge were the higher adjustments of prices for furnishings, household equipment, routine household maintenance, and health services.
Four out of the region’s six provinces recorded higher inflation rates in the last month of 2023. Eastern Samar experienced a lower inflation rate at 5.2% during the same period, down from 6.4% month-on-month. Southern Leyte maintained its rate at 2.4% over the past two months.
Among the provinces, Samar posted the highest rate at 6.6%, followed by Leyte at 4%, Biliran at 4%, and Northern Samar at 3.3%. Tacloban, the lone highly urbanized city in the region, recorded an inflation rate of 3.6% in December, higher than its 2.5% IR a month earlier.
The inflation rate, as defined by the PSA, is the annual rate of change or the year-on-year changes in the consumer price index. It serves as an indicator of how fast or slow prices change over two time periods (year-on-year).
Contrary to common knowledge, Perante emphasized that low inflation does not necessarily mean that prices of commodities are decreasing. Instead, it signifies that prices continue to increase, albeit at a slower rate.
As Eastern Visayas grapples with this inflation surge, it is crucial for the public to stay informed about the economic landscape. The rise in food prices, particularly rice, fruits, and nuts, directly impacts households, prompting consumers to adjust their spending habits.
In light of these developments, local authorities and policymakers may need to reassess economic strategies to mitigate the impact on residents. Additionally, businesses and consumers alike should stay vigilant and adapt to the changing economic conditions, considering potential implications on their budgets and financial decisions.
The PSA’s report serves as a crucial resource for residents and stakeholders to understand the economic dynamics in Eastern Visayas. As the region navigates through these challenging times, staying informed becomes a key tool for individuals and businesses to make informed decisions and adapt to the evolving economic landscape.◼
Business Bayani PH 
Leave a comment