Bicol economy remains steadfast despite high inflation incidence
January 21, 2010 12:26 pm
By Mar S. Arguelles
LEGAZPI CITY, Jan. 21 — The Bicol region’s economic condition has remained steadfast despite the high inflation rate that continue to affect the region’s market economy during the last quarter of 2009, the National Economic and Development Authority (NEDA) said.
NEDA report said prices of basic commodities, particularly food and fuel, significantly surged due to the annnual inflation rate in the Bicol Region which registered an eight-month high in December, gaining 1.3 percentage points over the November 2009 level.
December's 5.5 percent inflation rate was the highest since April when it hit 6.1 percent. The year-on-year change was placed 2.6 percentage points lower than the rate registered in the same period in 2008 and 1.1 percentage points faster than the national average.
While the Cagayan Valley and Autonomous Region in Muslim Mindanao (ARMM) recorded the highest inflation at 6.5 percent, Central Visayas posted the lowest at 2.7 percent. The average inflation rate for 2009 was placed at 4.6 percent, down sharply from the 9.5 percent of 2008.
Inflation rate of the Fuel, Light and Water commodity group soared to 10.0 percent, up by 8.4 percentage points from its level in November.
The varying increases were also noted in other commodities such as Services (2.0 percentage points), Food, Beverages and Tobacco (0.7 percentage point), Housing and Repairs (0.2 percentage point) and Clothing (0.1 percentage point). Miscellaneous commodity items managed to slip by 0.4 percentage point.
Higher inflation rates affected most the food items included in the region's market basket such as fish, fruits and vegetables, meat and miscellaneous foods, resulting to the overall rise in the Food group, the biggest component of the region's consumer basket.
The region's average monthly Consumer Price Index (CPI) was placed at 164.4, up by 0.8 percentage point from last month's index.
Indices in all commodity groups went up led by the Fuel, Light and Water commodity group with a 4.3-point increase, Services by 1.0 point, Food, Beverages and Tobacco by 0.7 percentage point, Clothing by 0.2 percentage point and Miscellaneous by 0.1 percentage point. Housing and Repairs remained unchanged from its level the previous month.
On a month-on-month basis, average inflation rate in the Bicol managed to decline by 0.3 percentage point. Decline in inflation rates of the Food group and Miscellaneous commodity group were observed while Fuel, Light and Water surged by 2.1 percentage points, Services by 0.5 percentage point and Clothing inched up by a 0.1 percentage point. Housing and Repairs sustained its previous month's level.
The purchasing power of the peso in the Bicol Region stayed at 61 centavos in December 2009 from P1.00 in 2000.
The construction of the P700 million Libmanan-Cabusao Dam in Camarines Sur by the National Irrigation Administration (NIA) was suspended indefinitely after months of controversy that split farmers’ groups in Camarines Sur. Tomasito Monzon, chief of the Bicol River Basin Watershed Management Project (BRWMP), announced the suspension of the P700 million LCD which he said “would give them time to attend to recommendations from groups opposing the project.”
Earlier, during the November RDC full Council meeting, Governor Joey Salceda, Chairman of the RDC5, directed the temporary suspension of the LCD until a full assessment is conducted and various issues are addressed by a project review team created for the purpose.
The team was tasked to review the project based on the approved standards and environment clearance certificate (ECC), including the reported project deviations. It will also look into the alleged complaints of various organizations concerning possible threats such as flooding and displacement of families to be affected once the dam project is completed. (PNA)
DCT/MSA/cbd
Comments