TACLOBAN CITY– Higher electricity costs contributed to the sharp acceleration of inflation in Eastern Visayas in July, with the region’s headline inflation rate rising to 8.3 percent from 7.0 percent in June, according to the Philippine Statistics Authority (PSA).
The 1.3-percentage-point increase marked a reversal from the slowdown recorded in the previous month, when regional inflation eased from 8.2 percent in May to 7.0 percent in June.
In the PSA-8 July 2026 report, the uptrend in the overall inflation in the region was primarily brought about by the higher inflation rate in housing, water, electricity, gas and other fuels at 9.6 percent during the month from 5.4 percent in June 2026.
The increase came as households faced higher electricity bills following a rise in generation charges.
“A sharp increase in power charges driven by record Line Loss and Congestion Charges (LLCC) and higher prices at the Wholesale Electricity Spot Market contributed to the acceleration of inflation in Eastern Visayas in July,” says PSA-8 chief statistical specialist Mae Almonte.
The region’s 11 electric cooperatives were earlier billed a combined P1.187 billion in the latest WESM-related charges, with P573.53 million, or nearly 48 percent, attributed to LLCC. This was more than double the P276.5 million recorded in June.
Electric cooperatives said the unprecedented LLCC was largely due to transmission constraints and power losses in the grid.
Higher charges came alongside increased WESM prices as several power plants temporarily shut down, supply in the Visayas grid tightened, and electricity demand remained high. These conditions resulted in several yellow and red alerts, pushing up prices in the spot market.
Another main driver to the upward trend of the regional inflation is the higher inflation rate in the heavily weighted food and non-alcoholic beverages, which increased to 7.7 percent in July 2026 from 6.7 percent in the previous month.
Higher prices of rice, fish and other essential food items pushed food inflation higher in Eastern Visayas in July 2026, with rice emerging as the main contributor to the region’s food price increase.
The regional food inflation rate accelerated during the month, largely due to the faster increase in rice prices. Rice inflation rose to 20.4 percent in July, up from 16.7 percent in June 2026.
Fish and other seafood also recorded a higher inflation rate at 8.2 percent, compared with 6.9 percent in the previous month, further contributing to the uptrend in regional food inflation.
The regional inflation rate remains significantly above the government’s target range of 2 to 4 percent. The Bangko Sentral ng Pilipinas has earlier projected that inflation in Eastern Visayas could remain above target through 2027, underscoring the need for continued monitoring of price pressures.
For consumers, the higher inflation rate means that prices continue to rise, although the extent varies across commodities. The latest figures reinforce the importance of managing household expenses as families cope with higher costs for essential goods and services.
The July inflation data also underscores the need for measures to stabilize electricity costs and strengthen the region’s energy supply as authorities work to protect consumers from further cost-of-living pressures.
(AHLETTE C. REYES, PIA-LEYTE)
