Cebu inflation eases in June, but food remains a burden for the poor

CEBU CITY, Philippines — Inflation in Cebu Province eased in June, offering some relief to households after months of steep price increases.

But food costs continued to weigh heavily on consumers, especially for low-income families.

Headline inflation slowed to 12.4 percent in June from 13.6 percent in May, according to the Philippine Statistics Authority in Central Visayas (PSA-7).

Despite the slowdown, prices remained substantially higher than a year ago, when the province recorded -0.8 percent inflation.

READ MORE: Central Visayas inflation to remain elevated throughout the year

The easing trend was also seen across Metro Cebu.

Inflation in Cebu City slipped to 8.6 percent from 9.1 percent in May, while Lapu-Lapu City’s rate fell to 8.8 percent from 9.7 percent. Mandaue City posted 9.1 percent, down from 9.7 percent.

Food, transport

Food remained the biggest contributor to rising prices, although inflation for food and non-alcoholic beverages eased to 17.5 percent in June from 19.1 percent in May.

The slowdown was largely driven by vegetables, whose annual price increases moderated.

Inflation for vegetables, tubers, plantains, cooking bananas, and pulses eased to 50.5 percent from 53.3 percent, while corn inflation also decelerated sharply to 34 percent.

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Rice prices likewise showed signs of easing across the Cebu Province, with inflation slowing to 9.9 percent.

In Cebu City, however, rice inflation accelerated to 17.7 percent, indicating that staple prices remained elevated in the provincial capital.

Transport costs also helped temper overall inflation as fuel prices climbed at a slower pace.

Gasoline inflation eased to 37 percent from 47.4 percent, while diesel slowed to 33.8 percent from 45.8 percent, providing some relief to motorists, public utility drivers, and commuters.

READ: PSEi extends winning streak on easing inflation

Poor households amid inflation

The slowdown in headline inflation has yet to translate into meaningful relief for Cebu’s poorest households.

For the province’s bottom 30 percent of income earners, inflation remained significantly higher at 16.2 percent, reflecting the heavier impact of rising food prices on families that spend a larger share of their income on basic necessities.

Food inflation for this group reached 20.6 percent, with food and non-alcoholic beverages alone accounting for 10.79 percentage points of the overall increase in prices.

Housing, water, electricity, gas, and other fuels contributed another 1.96 percentage points.

In practical terms, a low-income household that spent ₱1,000 on essential goods a year ago would now need about ₱1,162 to purchase the same basket of items.

READ MORE: Inflation, Duterte impeachment spark concerns over possible Ph unrest

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