Wednesday, March 6, 2019
BY MARCHEL P. ESPINA
The inflation rate in Western Visayas dropped to 3.3 percent in February from 4.1 percent in the previous month, data from the Philippine Statistics Authority (PSA) showed yesterday.
The inflation rate of the region is lower compared to the national average, which is 3.8 percent from 4.4 percent in the previous month, and the National Capital Region at 3.8 percent.
In fact, of the country’s 17 regions, Western Visayas and Caraga posted the third lowest inflation in all commodity groups at 3.3 percent.
Cordillera Administrative Region and Zamboanga Peninsula posted the lowest inflation rate with 2.5 percent while MIMAROPA has the highest increase at 5.3 percent.
Business and labor leaders in Negros Occidental said the drop in the inflation rate for February is a welcome development.
Frank Carbon, chief executive officer of the Metro Bacolod Chamber of Commerce and Industry, said the increase in the inflation rate in the previous months, particularly in November and December, were driven by food items.
“Right now, after the holidays, the demand for food decreased which is why there’s a drop in prices as there’s no demand,” he said.
He added, “Everyone is starting to save money for graduation and enrollment.”
Carbon remains optimistic the inflation will remain low until summer.
Senatorial bet Dan Roleda, who was with Carbon during the interview with the STAR, said the inflation rate is not accurate as it does not show the real situation as it does not gather the rated cost of production and profit.
He said the government should come up with a formula on price control to minimize profiteering.
For his part, Wennie Sancho, secretary-general of General Alliance of Workers Associations (Gawa), said the slowdown in the inflation remains to be seen, “if it is felt by consumers,” he added.
He also said the increase in prices of petroleum products in the coming days will also have an implication on the inflation.
PSA said the slowdown in the February inflation was attributed to slower price increases in both food and non-food items.
For Western Visayas, prices of food and non-alcoholic beverages decreased to 5.1percent from 5.9 percent ; alcoholic beverages and tobacco, 11 percent from 17.5 percent; clothing and footwear, .8 percent from .9 percent; housing, water, electricity, gas, and other fuels, 2.5 percent from 2.3 percent; furnishing, household equipment, and routine maintenance of the house, 1.6 percent from 2.4 percent; and health, 1.4 percent from 1.3 percent.
Luis Gonzales, PSA-Negros Occidental chief, said the food and non-alcoholic beverages commodities contributed to the decrease of the prices in the Consumer Price Index.
“This means, the prices of the basic needs of the people remain stable even with the intermittent price of oil,” he added.
The Bangko Sentral ng Pilipinas (BSP), said in a statement yesterday, the latest inflation outturn confirmed its projections that average inflation is expected to fall within the government's 2 percent to 4 percent target range in 2019 and 2020, highlighting the abatement of supply-side pressures in 2018.
“The BSP will continue to keep a close watch over possible emerging risks to the inflation outlook to ensure that the monetary policy stance remains appropriate,” the statement added.*
