Huge utilities spike pushes WV inflation to 8 percent

By Joseph B.A. Marzan

The cost of home utilities and fuel was the single biggest driver of inflation in the Western Visayas region last month, according to data released by the Philippine Statistics Authority (PSA) on Friday, Nov 4, 2022.

Housing, water, electricity, gas, and other fuels shot up by 3.9 percent – from 5.3 percent in September to 9.2 percent in October – to slightly push the overall regional inflation rate to 8 percent in October from 7.5 percent in September 2022.

Inflation in the commodity group of furnishings, household, equipment, and routine household maintenance also went up by 0.6 percent, from 4.5 percent to 5.1 percent last month.

Personal care and miscellaneous goods and services also rose, but only by 0.1 percent, from 4.1 percent in September to 4.2 percent in October.

Apart from these three commodity groups, inflation slowed down in almost all other commodity groups last month, compared to September:

–          Food and non-alcoholic beverages (8.9 percent from 9.2 percent);

–          Alcoholic beverages and tobacco (10.5 percent from 11.3 percent);

–          Clothing and footwear (2.0 percent from 2.4 percent);

–          Health (1.5 percent from 1.6 percent);

–          Transport (13.2 percent from 13.9 percent);

–          Information and communication (1.1 percent from 1.7 percent);

–          Recreation, sport, and culture (3.1 percent from 3.4 percent);

–          Education services (0.4 percent from 1.8 percent); and

–          Restaurants and accommodation services (7.0 percent from 7.1 percent).

The national inflation rate as of October 2022 is at 7.7 percent, and according to PSA chief Claire Dennis Mapa on Friday, this was the highest in 14 years since 7.8 percent in December 2008, which was due to the global financial crisis in that year.

This national figure was well within the Bangko Sentral ng Pilipinas’ projections of between 7.1 percent and 7.9 percent, citing hikes in agricultural and fuel prices as well as transport fares, coupled with the continuously dwindling value of the Philippine peso against the United States dollar.

The BSP said inflation is projected to remain elevated for the rest of 2022 but will likely decelerate in 2023 due to easing global oil and non-oil prices, negative base effects from transport fare adjustments in 2022, and as the impact of BSP’s cumulative policy rate adjustments take hold on the economy.

OIC Press Secretary Cheloy Velicaria-Garafil said in a statement on Friday that President Ferdinand Marcos Jr. has ordered the continued support to vulnerable sectors amid the new inflation report, via the provision of cash assistance and fuel discounts.