FROM 3.2 percent at the start of the year, inflation rate in Western Visayas has slightly increased to 3.3 percent in February, the Philippine Statistics Authority (PSA) reported.
The agency said the recent inflation rate of the region is the second highest in the country, next to Region V [Bicol Region] with 3.6 percent.
That of Western Visayas is also higher than the country’s headline inflation of 2.6 percent, which is a drop of three-point percentage from 2.9 in January 2020, it added.
An indicator of economic well-being, inflation is the sustained increase in the general price level of goods and services in an economy over a period of time.
In terms of commodity groups, the PSA reported higher inflation in the region among alcoholic beverages and tobacco, 18.4 percent to 20.5 percent; clothing and footwear - 3.1 to 3.3 percent; and furnishing, household equipment and routine maintenance of the house – 5.3 to 6.1 percent.
Other commodity groups with higher inflation rate included health, 3.2 to 3.7 percent; transport – 2.7 to 2.8 percent; recreation and culture – 2.1 to 2.5 percent; and restaurant and miscellaneous goods and services – 1.7 to 2.2 percent.
For housing, water, electricity, gas and other fuels, the agency noted a lower inflation, from 4.2 to 3.8 percent.
A steady inflation, meanwhile, was noted in food and non-alcoholic beverages, at 2.2 percent; communication – 0.4 percent; and education – 2.3 percent.
The local labor sector views the slightly higher inflation in the region as result of oil price hikes, and increases in the prices of vegetables, pork and meat due to African Swine Fever (ASF).
Wennie Sancho, secretary general of the General Alliance of Workers Associations (Gawa), said the closure of business establishments in Boracay Island resulting in flexible working arrangements reducing workers’ income and purchasing power are also relative to the upward movement of inflation.
“All of these are effects of an economic slowdown due to the novel coronavirus disease,” he added.
For the business sector, however, Metro Bacolod Chamber of Commerce and Industry (MBCCI) chief executive director Frank Carbon said the January and February inflation are still “healthy” rates.
“Meaning, there is steady demand and consumers are spending, and the prices are within the affordability range of the consumers,” he added.*