Oriental Mindoro Inflation Rises to 3.3% in June, Remains Below National Average

Inflation in Oriental Mindoro province inched up to 3.3% in June 2024, a slight increase from 3.1% in May, according to the latest report from the Philippine Statistics Authority (PSA).

The June 2024 Inflation Report, using 2018 as the base year, shows Oriental Mindoro’s inflation rate remains below both national and regional levels.

The Philippines as a whole saw inflation ease to 3.7% in June, down from 3.9% in May and significantly lower than the 5.4% recorded in June 2023.

MIMAROPA Region, which includes Oriental Mindoro, experienced a similar trend with inflation dropping to 4.4% in June from 4.6% in May.

Oriental Mindoro’s inflation rate has shown remarkable improvement over the past year, falling from 8.4% in June 2023 to its current level of 3.3%. This places the province in a better position compared to national and regional averages.

Inflation, the rate at which prices for goods and services rise over time, is a key economic indicator. It affects purchasing power and overall economic stability. Various factors contribute to inflation, including:

1. Demand-pull inflation: When demand for goods and services outpaces supply, driving prices up.
2. Cost-push inflation: Increased production costs, such as higher raw material or labor expenses, leading to price hikes.
3. Monetary inflation: An expansion of the money supply in an economy, potentially devaluing currency.
4. Built-in inflation: A cycle where workers demand higher wages to keep up with rising living costs, leading businesses to raise prices further.

The causes of inflation can be complex and interconnected. In the Philippine context, factors such as global oil prices, agricultural production affected by weather conditions, and changes in government policies can all play a role.

While Oriental Mindoro’s inflation rate has increased slightly, it remains within a moderate range. The provincial government and economic planners will likely monitor the situation closely to ensure price stability and maintain consumer purchasing power.

PSA conducts monthly Retail Price Surveys to generate the Consumer Price Index, which forms the basis of these inflation reports. These figures help policymakers, businesses, and citizens make informed decisions about spending, investing, and economic planning.

Photo credit: PSA