Escalating food costs—mainly driven by a sharp surge in rice and cereal prices—pushed inflation in the province and city of higher in September 2026, according to official statistical data released by the Philippine Statistics Authority (PSA).

Inflation in Iloilo province accelerated to 10.4 percent in September from 9.7 percent in August, while the city recorded an inflation of 7.8 percent, rising from 7.6 percent logged the previous month.

PSA Iloilo chief statistical specialist Jerry Dolutan said food and non-alcoholic beverages served as the top driver of the acceleration, recording an inflation of 9.4 percent and accounting for 87 percent of the increase.

Health services came in second, posting a 9.8 percent inflation rate and contributing 9.3 percent to the overall figure, while information and communication recorded 1.5 percent inflation, accounting for 2.9 percent of the increase.

In Iloilo City, price pressures were concentrated heavily in food and logistics.

Food and non-alcoholic beverages posted a 7.4 percent inflation rate, contributing 44 percent to the total increase.

Transport registered a 14.6 percent inflation rate, accounting for 39.1 percent of the city’s headline rate.

Restaurants and accommodation services logged a 1.9 percent decline in overall prices but still contributed 16 percent to the headline inflation calculation due to structural weighting.

Cereal prices and palay supply dynamics

Cereals and cereal products—predominantly rice—remained the single largest driver of food inflation across both local government units.

Cereal inflation hit 29.8 percent in the  province and 23.9 percent in the city during the month.

Dolutan attributed the sharp rise in staple food costs to lower local palay (unmilled rice) production coupled with higher farmgate buying prices offered by commercial traders.

“This could be an advantage for our farmers if their production is good because they would be selling at higher prices after their harvest,” he said.

Meanwhile, meat and slaughtered animal prices showed a slower rate of decline in both the province and the city, each registering an inflation rate of negative 3.6 percent.

PSA attributed the stabilization in meat supply to ongoing municipal interventions aimed at bolstering local livestock stocks, particularly in swine repopulation.

Across Western Visayas, Iloilo province recorded the third-highest inflation rate in September, trailing behind Aklan (11.6%) and Antique (11.4%). IMT