Aklan Records Lowest Inflation Since 2019, Opening Doors for Business Growth

By: John Dela Cruz

KALIBO, Aklan – Aklan posted its lowest overall inflation rate since 2019 in April 2025, according to the Philippine Statistics Authority (PSA) – Aklan Provincial Office, marking a significant milestone in the province’s post-pandemic economic recovery.

The latest data showed that not only did food inflation fall into negative territory, but overall consumer prices in Aklan have also decelerated to their slowest pace in six years, reflecting a combination of stable supply, improved agriculture, and increased import availability.

Inflation Declines Led by Cheaper Food, Especially Rice

The decline was largely driven by sustained reductions in food prices, particularly rice—the region’s staple commodity. Since December 2024, rice inflation in Aklan has consistently been in the negative, pulling down overall food costs and contributing significantly to the province’s low inflation rate.

This trend stems from a mix of factors:
• Boosted local rice productivity through public investment and better farming practices
• Increased inflow of cheaper imported rice
• Absence of major weather disturbances since early 2024, which has stabilized production and distribution

Positive Impact for Households and Businesses

For consumers, the easing inflation means greater purchasing power, allowing families to spend more on education, healthcare, and small investments. Meanwhile, businesses are seeing lower operational costs, particularly in food-related industries like retail, food service, and agribusiness.

“This level of price stability gives us confidence to expand operations,” said a local food wholesaler. “We’re seeing more spending among customers and lower costs on raw materials. It’s a good time for business.”

Investment Opportunities on the Rise

With inflation at a multi-year low, Aklan is positioned as a promising destination for agribusiness, logistics, and food processing investments. The province offers:
• Competitive supply prices
• Reliable agricultural output
• Proximity to major transport gateways like Kalibo and Caticlan airports

Sectors with high potential for investment include:
• Rice and grain processing
• Cold chain storage and distribution
• Farm mechanization and input supply
• Microfinancing and rural enterprise development

A Word of Caution: Balancing Growth

While current conditions are favorable, economic planners caution against prolonged low inflation or deflation, which could dampen growth by discouraging production and investment. The ideal inflation range, according to economists, remains at around 2% annually.

As of April 2025:
• National inflation was at 1.4%
• Western Visayas inflation was at 1.9%
• Aklan’s rate came in well below both, marking a historic low since 2019

Aklan’s Outlook: Stable, Affordable, Investable

The historic low in inflation signals economic stability, improved supply chains, and better resource management in Aklan. With prices under control and essential commodities more affordable, the province now offers an enabling environment for new investments, rural enterprise development, and inclusive growth.

Aklan is not just weathering inflation—it’s turning it into an opportunity.