THE latest surge in the country’s inflation rate has further raised the worries of businesses in Bacolod and Negros Occidental.
The inflation rate for the month of August increased to 6.4 percent from 5.7 percent in July.
Frank Carbon, chief executive officer of the Metro Bacolod Chamber of Commerce and Industry (MBCCI), on Wednesday, September 5, said the increase in prices of basic commodities like rice, fish, and vegetables is already “hurting” the public.
Regular employees who spend at least 70 percent of their income to food will no longer have enough budget for household expenditures like water, electricity, daily transportation, and other needs, Carbon said.
The surge in the prices of fuel and other petroleum products also trigger increase in prices of basic commodities and other products affecting small enterprises.
“At least 90 percent of our businesses is small enterprises, which will be substantially affected by higher inflation,” Carbon said.
The Philippine Statistics Authority (PSA) on Wednesday announced that the sustained increase in the general price level of goods and services climbed to another nine-year high.
The hike in the country’s inflation rate has been going on since the start of 2018. June’s inflation rate is at 5.2 percent; May, 4.6 percent; April, 4.5 percent; March, 4.3 percent; February, 3.8 percent; and January, 3.4 percent.
The PSA also reported that annual increases were observed in food and non-alcoholic beverages at 8.5 percent; alcoholic beverages and tobacco - 21.6 percent; furnishing and household equipment, 3.5 percent; health, four percent; restaurants and miscellaneous goods and services, also four percent; and recreation and culture, 2.4 percent.
The annual rate of the food index further climbed by 8.2 percent, it added.
Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr., in a report, said spikes in inflation are attributed to the "unfortunate confluence of cost-push factors" and the "elevated oil prices" which drove transport and power prices higher.
As this developed, the increasing trend in inflation rate has led local business groups to question the counter measures of the government against the adverse effects of inflation.
Carbon pointed out that concerned entities like the Department of Trade and Industry (DTI) and Department of Agriculture (DA) should have been convening the price coordinating council by now.
“There must be some immediate actions from the government. The price coordinating council, including here in the province and city, should already convene to determine the impact of the surging inflation to the people as it is hurting us now,” he said.
MBCCI has been expressing its worries over inflation since the PSA’s announcement on its increase in July.
The organization already raised concerns on the adverse effects of inflation to lower and middle class citizens.
Carbon said he is afraid that the escalating market prices will result to more criminalities.
“If the person’s income can no longer compensate his needs, it may trigger him to do criminal acts. Criminality would really discourage businesses," he added.
Carbon said they have yet to see any concrete action from the government that countered inflation except from the importation of rice and fish such as “galunggong” or round scad.
“We are now communicating with our counterpart-chambers in the entire Visayas. We are talking on how to go about this,” he said, urging the price coordinating council to invite the business sector once they convene.
Earlier, labor group General Alliance Workers Associations (Gawa) has already called on the price coordinating councils of Negros Occidental and Bacolod City to convene for the rise of prices of basic goods and services.
The group has even considered to file another petition for an increase in the daily minimum wage of private sector workers in Western Visayas and the alleged deterioration of the region’s purchasing power due to inflation.