Central Luzon posts record-high 8.4% inflation rate in October


The inflation rate in Central Luzon has accelerated to 8.4 percent in October from 7.1 percent in September 2022, based on the latest report of the Philippine Statistics Authority-Regional Statistical Services Office (PSA-RSSO) III.


This is the highest inflation recorded in the region since December 2008.


Central Luzon ranked fourth among the regions — with Davao Region recording the highest inflation at 9.8 percent, followed by Zamboanga Peninsula at 9.0 percent, and Mimorapa at 8.5 percent.


On the other hand, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and Soccskargen recorded the lowest inflation at 6.5 percent.


The headline inflation in the Philippines also accelerated to 7.7 percent in October from 6.9 percent in September. This is also the highest recorded inflation since December 2008.


In her report, PSA-RSSO III Regional Director Arlene Divino said the uptrend in inflation in Central Luzon in October was primarily brought about by a higher annual increment in the index of food and non-alcoholic beverages at 9.4 percent from 6.3 percent in September.


This was followed by the index of housing, water, electricity, gas, and other fuels at 10.7 percent from 9.7 percent and the index of restaurants and accommodation services at 2.9 percent from 2.5 percent.


Higher annual increments were also noted in the following indices, namely alcoholic beverages and tobacco at 14.3 percent; personal care, and miscellaneous goods and services at 4.4 percent; clothing and footwear at 4.1 percent; recreation, sports, and culture at 3.8 percent; furnishings, household equipment, and routine household maintenance at 3.4 percent; and health at 2.5 percent.


On the other hand, lower annual increments were recorded in transport at 15.0 percent and information and communication at 0.5 percent.


The same rate of increase as that of the previous month was observed in the indices of education services at 1.7 percent and financial services at 0.0 percent.


The annual growth rate in the regional food index registered an upsurge of 9.8 percent in October from 6.5 percent in September.


Gina Gacusan, regional director of the National Economic Development Authority (NEDA), said on Tuesday the high inflation rate is due to the effect of the global economic crisis.


Gacusan said the inflation rate normally rises starting October to December due to the high demand for commodities.


“We expect this to be a temporary situation at the moment. We expect to go back to the normal next year, kasi usually naman ang fourth quarter palagi mataas ang inflation, kasi mataas ang demand dahil Christmas season (because usually the inflation is high during the fourth quarter because of high demand during Christmas season),” she said in a television interview.


Source: Philippines News Agency