CV inflation rate higher than Phl average in 2012

CEBU, Philippines - Commodity prices in Central Visayas indicated a faster movement in 2012 peaking in September before slowing down in the last quarter of last year. This contrasted with the performance of prices in 2011.

Report from the National Statistics Office (NSO-7) and the National Economic and Development Authority (NEDA-7) revealed that while the Philippine average inflation rate last year went down to 3.2 percent (from 4.6 percent in 2011), the region’s average inflation rate however, rose to 5.1 percent from 4.4 percent in 2011.

According to the report, the region’s rate was the highest among the regions in the country. For the first time in many years, Central Visayas registered an annual inflation rate higher than the national average.

Almost all commodity groups registered substantial hikes in their inflation rates in 2012 compared to the previous year that resulted to a much higher average inflation rate for the region for the year.

The highest inflation rate (8.0 percent) was posted by the Housing, Water, Electricity, Gas, & Other Fuels group due largely to a double-digit inflation rate registered by Housing.

The Alcoholic Beverages & Tobacco group posted the second highest inflation rate of 6.9 percent as a result of expectations of a hike in “sin taxes” on tobacco and cigarettes. Many stores started to sell tobacco and drink at inflated prices even before the government finally passed the law raising the taxes on cigarettes and alcohol in December 2012.

Meanwhile, the Communications group posted the lowest inflation rate at 0.1 percent.

Among the provinces in the region, Cebu posted the highest annual inflation rate at 6.1 percent, followed by Siquijor at 5.6 percent. On the other hand, Negros Oriental had the lowest inflation rate of 3.2 percent.

In Cebu and Negros Oriental, prices grew fastest in the Housing, Water, Electricity, Gas and other fuels group.

While higher housing rentals was responsible for the spike in prices in the Housing, Water & Electricity group in Cebu, higher charges for electricity, gas, & fuel was responsible for the price escalation in this commodity group in Negros Oriental.

In Bohol, Education posted the highest inflation rate as a result of higher school fees while Siquijor had the Recreation & Culture group registering the highest inflation rate.

Food prices rose fastest in Siquijor (notably for fruits), followed by Cebu (notably for corn). Negros Oriental, on the other hand, exhibited the slowest hike in food prices. /JMD