WITH the national inflation rate breaching the 6-percent mark, businesses will have to make adjustments in their production costs, a business leader said.
Davao City Chamber of Commerce and Industry, Inc. (DCCCII) vice president for industry Belinda L. Torres said the continued acceleration of the inflation rate will have an effect on all businesses.
“Cost of living and cost of doing business will be directly hit, especially that the impact is on the fuel and food prices wherein everyone uses them,” Torres said in a phone interview on Thursday, September 6.
The inflation rate is seen to increase the cost of raw materials; resulting to an increase in the prices of products.
“As production cost increases, the prices may also increase to keep the business sustainable,” Torres added.
In the coconut industry, Philippine Coconut Authority (PCA) coconut production and regulation officer Arnel R. Cabillan said in a phone interview that despite the elevated inflation, the cost of coconut will remain low due to the high supply of coconuts in the country.
The Philippine Statistics Authority in Davao region (PSA 11) reported the inflation rate in Davao Region increased to 6.2 percent in July, higher than the national rate of 5.7 percent in the same period.
PSA 11 also reported that this increase of inflation in Davao region was because of the increase in all commodity indices excluding education which recorded a 1.4 inflation rate percent in July from 2.2 percent in June.
“I understand that the government is swiftly doing remedies and is confident to lower it in the next few months. We hope everything will normalize very soon as majority of the businesses are MSMEs (micro small and medium enterprises),” Torres said.
Meanwhile, on Wednesday, the Bangko Sentral ng Pilipinas (BSP) reported that inflation rose to 6.4 percent, the highest level observed since April 2009, as supply and logistical issues continued to drive price pressures.