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Kanlaon eruption has minimal effect on June inflation: PSA 

The eruption of Mt. Kanlaon in Negros Island had minimal effect on the June inflation rate for all income households in Negros Occidental, which increased to 4.5 percent from 4.2 percent in May this year, according to the Philippine Statistics Authority (PSA) on Monday, July 15.

PSA-Negros Occidental chief statistical specialist John Campomanes said the increase in the prices of some goods after the volcanic eruption on June 3 was negligible.  

“There are some vegetable items affected, but the volcanic eruption itself has no major contribution to inflation because the Department of Trade and Industry implemented an automatic price freeze,” Campomanes said in a press conference held at the PSA Negros Occidental Provincial Statistical Office in Bacolod City.

In Negros Occidental, the top source of June inflation was food and non-alcoholic beverages, which expanded to 6.6 percent from 5.8 percent in May, with a 58.9 percent share to uptrend in inflation, the PSA report showed. 

Particularly, cereals and cereal products, including rice, increased to 13.2 percent in June from 12.5 percent in May. 

Housing, water, electricity, gas, and other fuels commodity was the top major contributor to last month’s inflation, increasing to 1.7 percent in June from 1.6 percent in May, equivalent to a 95.5 percent share to uptrend in inflation.

In May, the inflation rate for electricity was only -10.6 percent, then went up to 1.4 percent in June, while for gas, from 10.1 percent in May to 17.2 percent in June. 

Meanwhile, in Bacolod City, the inflation rate for all income households accelerated to 6.1 percent in June from 4.5 percent in May. 

The top major source of inflation was food and alcoholic beverages, expanding to 7.1 percent in June from 6.1 percent in May, with a share of 37.9 percent to the uptrend inflation. 

Similar to Negros Occidental, the top major contributor to June inflation in Bacolod was housing, water, electricity, gas, and other fuels, which grew to 7.4 percent from 0.7 percent in May. 

This is equivalent to 80.8 percent share of the uptrend in the city’s inflation last month, the PSA report said.*PNA  

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