Ilocos Region’s Inflation Rises to 3.3% in July, Impacted by Typhoon and School Openings

ILOCOS, PHILIPPINES — The inflation rate in the Ilocos Region surged to 3.3 percent in July 2024, up from 2.8 percent in June, influenced by significant price increases across food, educational services, and transport sectors, according to data released by the Philippine Statistics Authority (PSA) Ilocos Region on Friday.

According to Philippines News Agency, senior statistical specialist at PSA Ilocos Region, food and non-alcoholic beverages saw a notable inflation increase to 7.2 percent in July from 6.5 percent in June. This category contributed the most to the region’s inflation, with specific increases observed in vegetables, tubers, plantains, cooking bananas, and pulses which recorded a 6.8 percent rate. Conversely, inflation rates for rice and corn saw slight decreases.

The rate of price increases in educational services also jumped significantly, reaching 6.4 percent from 4.5 percent, driven by the implementation of new school fee rates with the opening of classes. Transport inflation accelerated to 3.4 percent from 2.3 percent, largely due to higher gasoline prices, which Borja noted were chiefly responsible for 20.9 percent of the inflation increase in this sector.

Feynon Perez, Chief of Project Monitoring and Evaluation Division at the National Economic and Development Authority (NEDA) Ilocos Region, attributed the sharp inflation rise to external factors such as Super Typhoon Carina and the onset of the rainy season, which typically exacerbates food inflation by affecting supply. Perez also highlighted global events impacting oil prices as a significant factor for the rise in transport costs.

Despite these challenges, Perez reassured that the July inflation figure remains within the government’s target range of 2-4 percent. He expressed confidence that a balance between supply and demand in the market would help stabilize future inflation rates.

Among the provinces in the region, La Union experienced the highest inflation rate at 4.9 percent, followed by Ilocos Norte at 3.3 percent, Pangasinan at 3.1 percent, and Ilocos Sur at 2.4 percent.