PUERTO PRINCESA CITY, Palawan (PIA) -- The holiday season’s demands for transportation fares and an increased power rate pushed the acceleration of inflation in Puerto Princesa in December 2023, the Philippine Statistics Authority (PSA) reported.

In the monthly report, Chief Statistical Specialist Maria Lalaine Rodriguez said commodity groups of transport and housing, water, electricity, gas, and other fuels contributed 0.7 percent and 7.5 percent, respectively.

It resulted in an acceleration of the city’s inflation to 4.8 percent in December from November’s 4.3 percent. The last year’s inflation was almost half of the rate recorded in December 2022 at 7.9 percent, which Rodriguez explained as a result of a better economic situation.

“Kapag holiday season ay uwian ng mga estudyante, kaya ang naka-affect ng husto diyan ay passenger transport by sea at saka by air. Syempre, ang mga negosyante ay hindi sila magpo-promo fair kasi mag-uuwian,” she said.

PSA based the inflation rate of electricity on the kilowatt-hour consumption and its corresponding amount in sample households.

In December, Palawan Electric Cooperative (PALECO) announced that the true cost of generation rate (TCGR) will completely reflect on the member-consumer-owners (MCOs) bill due to the absence of subsidies under the emergency power supply agreement (EPSA).

The kilowatt per hour (kWh) rate gradually increased from P11 in October to P13 in November and P14 in December. PALECO is set to enter into another EPSA to aid in the possible power loss with the end of the contract with Palawan Power Generation, Inc. As a result, the kWh rate will increase by an additional P3.

“Expect natin na since ang galaw ng presyo ay pataas, talagang may chance na tataas na naman tayo sa susunod na pagtaas--Lahat nag-Christmas lights, isa pa ‘yon, kasi consumption,” she said.

Palawan, on the other hand, showed a deceleration of 4.9 percent from November's 5.5 percent. It is about half of the December 2022 rate of 9.9 percent. The commodity groups of food and non-alcoholic beverages, health, and clothing and footwear posted rates of 5.8 percent, 2.4 percent, and 5.6 percent, respectively.

Among provinces in the MIMAROPA region, Palawan showed the slowest movement of the inflation rate in December. The inflation rate in the region also decelerated from 4.8 percent in November to 4.4 percent in December.

In December 2023, the purchasing power of the peso fell from P100 in 2018 to P78 in Palawan and P80 in Puerto Princesa. (RG/PIA MIMAROPA - Palawan)