THOUGH the country’s headline inflation eased by 0.3 percent in July this year, in Western Visayas it has increased to 2.7 percent from 2.5 percent in June.
The Philippine Statistics Authority (PSA) reported that the region’s inflation, or the sustained increase in the general price level of goods and services, in all commodity groups is the seventh highest in the country.
For the local labor sector, the higher inflation rate in Western Visayas is contrary to the often-repeated pronouncement of the government that inflation will be lowered.
Wennie Sancho, secretary general of the General Alliance of Workers Associations (Gawa), said this will justify their demand for wage increase.
Sancho said the increase in inflation will trigger upward movements in the prices of basic goods and services called “cost-push inflation.”
“It will also push upward the consumer price index (CPI) that would further reduce the workers purchasing power or the real value of their salaries and wages,” he added.
As per commodity group, the PSA noted an upward movement in clothing and footwear at 1.7 to 2.3 percent; furnishing, household equipment and routine maintenance of the house - 2.2 to 3.0 percent; health - 1.6 to 2.4 percent; recreation and culture - 3.4 to 3.8 percent; and education - negative 9.6 to 2.3 percent.
A lower regional inflation rates were noted in food and non-alcoholic beverages - 3.5 to 3.2 percent; alcoholic beverages and tobacco - 8.1 to 8.0 percent; housing, water, electricity, gas and other fuels - 3.2 to 2.4 percent; and transport - 0.6 to 0.3 percent.
The region, on the other hand, maintained the same rates for communication at 0.6 percent and restaurant and miscellaneous goods and services at 1.8 percent.
For the business sector, on the other hand, Metro Bacolod Chamber of Commerce and Industry chief executive officer Frank Carbon said the 0.2 percent increase is negligible or has no material effect on basic or essentials goods.
“It can be recalled that the target inflation range of the economic managers is between 2.0 to 4.0 percent,” he added.
On a national level, the country’s inflation dropped from 2.7 percent in June to 2.4 percent in July.
This was the lowest inflation recorded since January 2017, and it was the same rate observed in July of the said year.