THE year 2020 started with a higher regional inflation rate at 3.2 percent for Western Visayas.
Philippine Statistics Authority (PSA) records showed that from 2.2 percent in December 2019, the region’s inflation rate inched up by one percentage point during the first month of this year.
The upward movement is attributed to increases in the inflation of most commodity groups.
For food and non-alcoholic beverages, inflation rose to 2.2 percent from 1.2 percent and for alcoholic beverages and tobacco, from 16.5 percent to 18.4 percent.
Other commodity groups also posted increases: clothing and footwear, 2.9 percent to 3.1 percent; housing, water, electricity, gas and other fuels, 1.6 percent to 4.2 percent; transportation, 1.6 percent to 2.7 percent; and recreation and culture, 2.0 percent to 2.1 percent.
The inflation rate was flat for communication, at 0.4 percent; education, 2.3 percent; and restaurant and miscellaneous goods and services, 1.7 percent.
Commodity groups with lower inflation are furnishing, household equipment and routine maintenance of the house at 5.3 percent from 5.4 percent and health at 3.2 percent from 3.3 percent.
Western Visayas’ inflation rate is higher than the national headline inflation rate
of 2.9 percent.
The PSA said this is the country’s highest inflation recorded since the 2.7 percent in June 2019.
The annual rate in December 2019 was 2.5 percent and in January 2019, 4.4 percent, it added.
Minimal effect
For the local business sector, the latest increase in inflation has a very minimal effect on the overall economy of the region.
Frank Carbon, chief executive officer of Metro Bacolod Chamber of Commerce and Industry (MBCCI), said the one percent increase in consumer goods is within the affordability range for the consumers.
Carbon said that for the business, it signals that the demand is still strong.
“So, production continues and job creation is sustained,” he said, adding that the development cycle is on track.
Apprehensive
The labor sector, on the other hand, is apprehensive with the increase in the regional inflation rate.
Wennie Sancho, secretary general of the General Alliance of Workers Associations (Gawa), said there’s an increase in the prices of fish, vegetables and other basic commodities as well as petroleum products.
Sancho said the recent rollback in pump prices are just “for a show” as these are still part of the oil companies’ buffer stocks.
Also, the excessive taxation like on petroleum products contributes to the higher inflation aside from the implementation of price increase among medicine without public consultation, he said.
“Precisely, this is a bad signal for the labor,” Sancho said, adding that “we might be badly-hit by the economic impact of novel coronavirus issue.”
The labor leader reiterated that the pressing health concern will have an effect on labor, trade and industry.
Gawa is apprehensive that the higher inflation trend will continue.
“Tourism-related establishments would be compelled to downsize personnel,” its secretary general also said.