percent due to enough supply
of corn as a result of good harvest. Prices of fish and meat slowed down to 0.9
percent and 3.1 percent, respectively compared a year ago.First Quarter 2001 Regional Economic Situationer
Western Mindanao
6.
Inflation
6.1
By Commodity, Year-On-Year
Inflation
rate of the region had accelerated to 5.5 percent for the first three months of
the year 2001,
higher than the 2.7
percent recorded in the same quarter a year ago.
The
increase was
caused primarily by the faster rise in prices of
most of the non-food items such as transportation
and communication (22.8%), light (16.6%), fuel (11.9%) and educational services
(10.7%). Moreover, the increase in the prices of tobacco, beverages and dairy
products, which was due to high cost of raw materials/inputs, as well as the
devaluation of peso contributed to the rising prices. The January inflation was recorded at 5.6 percent and
slowed down to 5.3 percent in February, before it climbed again to 5.5 percent in March.
Retail
price of rice picked up by 3.4 percent due to inadequate supply of rice as a
result of the declined in the palay production. Meanwhile, price of corn
declined by 0.8
percent due to enough supply
of corn as a result of good harvest. Prices of fish and meat slowed down to 0.9
percent and 3.1 percent, respectively compared a year ago.
Prices of fuel, light and water increased by 12.5 percent in the 1st quarter of 2001 from 8.2 percent in the same quarter of last year. This could be attributed to the price increases in LPG and kerosene; as well as on the Purchased Power Rate Adjustment and Currency Exchange Rate Adjustment charged by the electric cooperatives to electric consumers.
6.2.
By Province/City
All the provinces/cities experienced higher inflation rates in the first three months of the year with Basilan registering the highest rate at 10.6 percent, compared to the 1.0 percent the previous year (Annex 10A). The 2nd biggest increase was in Zamboanga City (8.3 percent), followed by Zamboanga del Sur (4.8 percent) and Zamboanga del Norte (2.1 percent).
Contributory to the higher inflation experienced in Basilan was the increase in the water rates (35.3 percent), prices of fish (27.0%), corn (17.3%), transportation and communications (18.9%), personal services (18.8%), rental rates (16.7%), custom clothes (15.6%, which coincide with the graduation period/commencement exercises), cereal preparation (15.5%), light (14.9 percent), and educational services (14.7%).
The inflation rates for Zamboanga City picked up by 8.3 percent from the previous years rate of only 0.8 percent. This could be attributed to the rising cost of light (30.9%), transportation and communication (26.5 percent), tobacco (20.3%), fuel (11.6%), and rental rates (8.1%). Other items such rice, fruits and vegetables, dairy products, and meat were correspondingly higher this quarter compared last year. However, the only items that registered negative rates were corn and household furnishings, which declined by 6.1 percent and 0.3 percent, respectively.
In Zamboanga del Sur inflation rate was registered at 4.8 percent, higher than the 2.3 percent reported in the 1st quarter of 2000. Still the cost in the transportation and communication services, which climbed by 30.8 percent, contributed to the higher inflation in the province. Added to this are the higher cost of fuel and light as well as the increase in the prices of dairy products, beverages and tobacco.
Zamboanga del Norte’s inflation had slowed down from 5.6 percent in the 1st quarter of 2000 to 2.1 percent this quarter. It is the only province, which reported much lower inflation than the previous year. The slowed down could be attributed to the decline in the prices of rice, corn, fish, fruits and vegetables, meat as well as much lower water rates. However, prices of footwear almost doubled (43.2%), while educational services (26.7%), recreational (22.7%), fuel (16.9%), and minor repairs (14.2%) had picked up.
6.3
By Commodity Group, Month-On-Month
Month-on-month inflation in the region had slowed down from 0.51 percent in January 2001 to .06 percent in February and 0 growth in March (Annex 10B). The biggest price increase was reported in the footwear item (10.79%), followed by light (7.31%), minor repairs (4.01%), recreational services (4.06%), ready-made apparel (2.55%), and rental rates (2.13%). In addition, prices of tobacco (1.92%), transportation and communication (1.74%), fuel (1.69%), dairy products (1.62%), personal care and effects (1.56%), beverages (1.55%), and household operations (1.49%) had gone up compared to the previous month. On a month-on-month basis the following items had a much lower rate compared to the previous month: rice (-1.13%), corn (-5.2)%), and educational services (-2.85%).
