Bohol’s Sept inflation at

1.4%, within BSP target

TAGBILARAN CITY, Bohol, (PIA)— Headline inflation in Bohol for September, slowed down to 1.4 percent after a 1.5% annual rate in the year-on-year change in the average retail prices of a fixed basket of goods and services commonly bought by Boholano households.

This also puts the average year on year average inflation rate at 2.0 percent, shares Philippine Statistics Authority Chief Supervising Statistician Jessamyne Anne Alcazaren, during the monthly inflation rate data dissemination at the PSA Galeria Luisa Mall, Tagbilaran City.

Bangko Sentral ng Pilipinas, which oversees the inflation rate in the country and maintains price stability, with other agencies, set the inflation rate target between 2 percent to 4 percent.

In fact foreign economies believe that a 2% inflation rate is the sweet spot for economic growth.

At the monthly inflation rate dissemination, Alcazaren said the main sources of the deceleration of inflation in September 2025 is housing, water electricity, gas and other fuels which posted a 7.0 percent inflation with its 95.8% share which largely slowed the price movements.

And then, there was information and communication which had 0.0% inflation in September from an August rate of 0.8 percent owning a 2.6 percent share in the slowing down of price movements and health, which had 1.7 percent inflation which has 0.8 percent share in the downtrend, she added.

Contributing largely to the September Inflation were housing, water, electricity, gas and other fuels which has 1.7 percent inflation and has 114.4 percent share in the inflation rate; furnishings, household equipment and routine household maintenance which had 3.7 percent inflation and has 11.0 percent share; and transport with 1.0 inflation rate and 8.7 percent share in the monthly price movements.

At this, she pointed out that inflation for the bottom 30% income households remains at -2.2 percent in September, compared to a 4.2 percent inflation rate in September 2024.

Critical in the inflation characteristics for the bottom 30% income households in September are Food and non-alcoholic beverages at -4.7 owning up 82% of the inflation share, transport with 0.8 % with 9.3% inflation share and housing, water, electricity, gas and other fuels at 0.4% which weighs 5.9 % to affect the inflation rate.

According to the PSA, the top contributors to the inflation in this sector are rice with a -18.4% from -20.1 in August, corn with -25.6% from a -22.9% and passenger transport by air at -6.9% for -10.5% the month before.

For the bottom 20 percent income households, because there is not much movement in prices, (evidenced by the -2.2 % inflation rate) it means they have increased purchasing power.

A low inflation rate in Bohol however does not simply mean low prices, Alcazaren pointed out.

As inflation is the average change of the index in consumer prices, a low inflation rate means very little movement in prices in the macro level.

A low inflation rate means prices rise slowly. And with a P500 daily minimum wage implemented recently in Bohol, wage earners can buy more goods and services with their increased income.

In fact, a negative inflation (or deflation), in rice and corn provides relief from the burden of rapidly increasing costs for other essential food, which impacts low-income households.

Simply summarized, Bohol’s inflation rate, which reflect a moderate amount of inflation is generally considered to be a sign of a healthy economy, because as the economy grows, demand for stuff increases.

The increase in demand pushes prices a little higher as suppliers try to create more of the thing that consumers and businesses want to buy.

This too spurs factories to employ more and workers’ wages and benefits go up with the economic growth it drives.

With purchasing power, these workers go out and buy more stuff, and so this “virtuous” cycle continues, something that economists call as a healthy, growing economy. (PIABohol)

MODEST INFLATION. Low inflation does not necessarily mean, low prices, hints Bohol PSA CSS Jessamyne Anna Alcazaren. With less price movements, it makes it easier for businesses and consumers to plan for savings and investments and it encourages spending, as consumers may buy sooner to avoid slightly higher prices in the future. (PIABohol)