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Saturday, December 11, 2004
Region 10 inflation hike small
By Lizanilla J. Amarga
THE inflation rate in the region is expected to inch some notches higher during the Christmas season but would still be within the one digit level, National Economic Development Authority (NEDA-10) reported Friday.
This came with reports that despite the problems faced by the country such as the budget deficit and the rising prices of oil products, the regional economy improved its third quarter performance over that of the same period last year.
In an interview with Sun.Star Cagayan de Oro, NEDA-10 chief economic development specialist for Macro-Inter-sectoral coordination and assistance division Clark Clarete said the average inflation rate was already pegged at 7.2 percent for the third quarter this year from 4.1 percent of the same period in 2003.
"This is due to the series of oil price and fare hikes that we experienced during the third quarter," he said.
Inflation is the average rise or fall of prices of basic commodities. In the third quarter this year average inflation for food, beverage and tobacco went up to 8.7 percent, clothing by 3.9 percent, housing and repair by 2.9 percent, fuel, light and water by 9.8 percent, services by 9.3 percent and miscellaneous by 1.8 percent.
In the Regional Economic Situationer Third Quarter of 2004 which was just released Friday, the over-all development outlook projected that the average inflation rate would increase a little higher this Christmas season.
"The effects of the increases in oil prices and transport fares are already being felt in terms of prices of basic commodities. With the Christmas season ahead, prices of commodities are expected to rise a little further but will still be within the one digit level," it reads.
Nevertheless, the Third Quarter report projected a still robust economy for Northern Mindanao.
This as agricultural production increased for most crops except for coconut and some commercial crops, which declined slightly. Livestock production continued its rising trend especially poultry which increased by 32 percent.
It also reported how business and industrial activities remained vibrant as manifested by the increases in the following major indicators.
This includes inflow of investments as monitored by the Department of Trade and Industry, collection of taxes and customs duties, export receipts, incoming and outgoing flights and passenger traffic, tourist arrivals, both domestic and foreign, and sales of electric power.
This latest quarterly report said all these economic indicators translated into the employment of an additional 69,000 individuals which in turn improved the employment rates from 91.5 percent to 92.7 percent.
With the relatively better weather condition, NEDA-10 said a better agricultural production is expected, especially for food crops, which could cushion further increases in the prices of basic commodities.
"Even with the fiscal problem faced by the government, the regional economy has good prospects for improvement as the private sector strengthens its role as the economy's engine of growth," the report reads.
(December 11, 2004 issue)
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