SAN FERNANDO CITY, La Union (PIA) – The Ilocos Region recorded the lowest inflation rate nationwide in 2024, achieving 2.1 percent, according to a Philippine Statistics Authority’s (PSA) report published on Jan. 7.
PSA National Statistician and Civil Registrar General, Undersecretary Dennis Mapa, highlighted the performance of the Ilocos Region and other regions outside the National Capital Region (NCR) for its 2024 inflation figures.
“Relative to their 2023 annual average inflation rates, all regions outside NCR recorded slower inflation rates in 2024. Region I (Ilocos Region) registered the lowest annual average inflation rate of 2.1 percent in 2024,” Mapa said.
The low inflation rate figure represents a significant decline from the 5.1 percent inflation rate recorded in 2023 and is well below the national average of 3.2 percent for 2024.
PSA Regional 1 Director, Atty. Sheila De Guzman commended the Ilocos Region’s performance in 2024, with La Union and Ilocos Norte leading the way.
“Among the provinces, Ilocos Sur posted the highest inflation rate at 5.1 percent in December 2024, followed by Pangasinan at 2.8 percent. La Union and Ilocos Norte recorded inflation rates of 2.4 percent and 2.1 percent, respectively,” De Guzman said.
Factors behind the decline
The Ilocos Region’s decrease in inflation can be attributed to lower price indices across major commodity groups from November to December 2024, including:
- Alcoholic beverages and tobacco: 3.0 percent;
- Clothing and footwear: 4.4 percent;
- Furnishings, household equipment, and routine maintenance: 3.0 percent;
- Health: 1.8 percent;
- Restaurants and accommodation services: 0.8 percent; and
- Personal care and miscellaneous goods and services: 4.3 percent.
Additionally, lower inflation was observed in several food groups during the same period:
- Cereals and cereal products: 2.6 percent;
- Milk, other dairy products, and eggs: 1.5 percent;
- Sugar, confectionery, and desserts: -2.5 percent; and
- Ready-made food and other food products: 7.5
Effective policies tapering inflation
The decline in inflation can be attributed to several national and regional efforts.
The Bangko Sentral ng Pilipinas (BSP) lowered interest rates in Dec. 2024 to help boost economic growth and keep inflation within a manageable range.
Improving supply chains, especially for essential goods, helped stabilize prices and ease inflationary pressures on the national and regional front.
At the regional level, the close monitoring of the prices of everyday items, like food and fuel, contributed to tempering inflation by taking immediate action when necessary to prevent price hikes.
These efforts helped avoid shortages and kept inflation from rising.
By making sure people had access to affordable goods, these local strategies played a key role in keeping the region’s inflation rate lower compared to others.
Impact on residents and businesses
Residents of the Ilocos Region are reaping the benefits of the lower inflation rate.
Rizalina Gali, a market vendor in Tubao, La Union, said that the lower inflation brought relief to both sellers and consumers in her town, crediting the government for making goods available while also stabilizing prices.
“Prices of basic goods are more stable now compared to previous years. This has been a big help for both vendors and buyers. We hope this trend continues,” Gali said.
Businesses also benefit from a more favorable environment, from improved market conditions to increased consumer confidence as a result of stable prices.
As the region continues to lead in economic stability, the PSA and local government units shift their focus on economic monitoring and adaptive policies that are critical in maintaining the downward inflation trend.
The Ilocos Region’s accomplishment highlights resilience and effective governance, offering a model for sustainable growth and price stability that other regions in the Philippines can emulate. (AMB/CCMT, PIA La Union)
