Butuan city: Inflation in the Caraga region surged to 1.3 percent in September, primarily driven by increased costs in housing and transport, as reported by the regional office of the Philippine Statistics Authority on Thursday. This marks a rise from the 0.6 percent rate in August and the 1 percent rate recorded in September 2024.

According to Philippines News Agency, the housing, water, electricity, gas, and other fuels category was the chief contributor to this inflation, with rates escalating to 6.7 percent from 3.9 percent the previous month. This category contributed to 73.8 percent of the overall inflation increase in the region. Within this category, significant inflation drivers included a rise in actual rental costs and electricity prices, which increased to 8.2 percent and 6.6 percent, respectively, from 3.4 percent and 5.7 percent in August.

The transport sector was the second-largest contributor to the inflation rise, with rates jumping to 1.5 percent from 0.2 percent in August, primarily due to higher prices of fuels and lubricants.

Conversely, the food and non-alcoholic beverages category experienced deeper deflation, moving to -2 percent in September from -1.8 percent in August. Food inflation alone decreased to -2.6 percent, attributed to reduced costs for fish and seafood, fruits and nuts, and milk and eggs. Despite this, inflation increased for oils and fats; vegetables and tubers; sugar and desserts; and ready-made food.

In terms of geographic impact, Butuan City recorded the highest inflation at 4.5 percent, up from 3.8 percent. Among the provinces, Agusan del Norte experienced a sharp rise to 2.1 percent from 0.1 percent. In contrast, Surigao del Sur witnessed a decline in inflation, registering at -0.4 percent.