A brewing storm over taxes and prices has erupted  after the Philippine Statistics Authority (PSA-6) pulled back from its own official’s remark that Iloilo City’s 300% Real Property Tax (RPT) hike had pushed up consumer prices—prompting Mayor Raisa Treñas to slam what she called “too much politics” aimed at wrecking the city’s reputation.

PSA-6 OIC regional director Nelida Amolar had told reporters on August 14 that higher RPT burdens usually force businesses to recover costs by passing them on to consumers.

“If RPT increases, establishments will add to the prices of commodities. Where else will they get it? If businesses pay more, they sell less—that’s a direct effect, especially in wholesale, retail, and even services like restaurants and cafés,” she said.

But in a rare about-face, the PSA quickly issued a clarification, insisting her words were taken out of context.

“Ms. Amolar stated that in general there is a direct effect on prices of some commodities, but it does not mean that the increase in the city’s inflation rate is directly attributed to the RPT,” the agency stressed.

The PSA said Iloilo City’s 3.7% inflation in July 2025—up from 2.7% the month before—was primarily driven by soaring electricity costs, which surged 19.8% under the housing and utilities category and accounted for over 91% of the month’s inflation uptick.

Amolar herself moved to douse the fire, apologizing in a text message to Treñas.

“I vehemently deny that I said inflation in Iloilo City is caused ‘directly’ by the 300% RPT. My statement was misquoted. Somebody asked me a general question,” she explained, adding that headlines suggesting PSA “warned” Ilonggos and tourists were misleading.

The clarification did little to cool tensions at City Hall, where Mayor Treñas blasted what she described as orchestrated attacks.

“If RPT is connected to inflation, then why is it fluctuating? The RPT issue started two years ago, but inflation only moves up and down depending on other factors. I am an economics graduate,” Treñas told reporters.

The mayor was visibly angered by efforts to link the tax hike to inflation.

“This is too much politics they are doing. They are destroying the city—at what expense? This is the growth of our city. Do we just allow it to be ruined?” she said.

Treñas also challenged the media to move past sensational angles: “As media, I urge you to also do your research and do it right. This is not only affecting me, this is affecting the entire city,” she said, claiming several economists have backed her position.

Yet not all economists are convinced. The Institute of Contemporary Economics (ICE) released a counter-study asserting that Iloilo City’s RPT hike remains a “unique inflationary driver”.

According to ICE, even the 40% reprieve approved by the City Council has failed to ease the burden. Iloilo City and the province were the only areas in Western Visayas to record climbing rental costs, a trend the group directly linked to landlords passing RPT hikes onto tenants.

“The only variable present in Iloilo City separating it from the region is the unusually severe increase in real property taxes,” ICE concluded, adding that higher rents from the RPT hike ripple across businesses and ultimately inflate consumer prices in food, goods, and services.IMT