BAGUIO CITY (PIA)–Increase in prices of food, transport, and housing utilities in the Cordillera continues to pose a challenge for development workers as it over rides the region’s gains in poverty alleviation and economic development as a whole.
National Economic and Development Authority-CAR Senior Economic Development Specialist Freda Toyoken noted that this major contributor to inflation in the region in 2022 belongs to the basic needs that fall under the monthly bills of most Cordillerans.
“Yung top contributors are basic needs, they are not wants so mas matindi ‘yung problema natin as development workers,” she said.
During the Dissemination Forum on CPI and 2022 Inflation on January 31, Philippine Statistics Authority-Cordillera Chief Statistical Specialist Aldrin Federico Bahit Jr. bared that food, transport, and housing including electricity, gas and other fuels are the major drivers of the 6.4 percent average inflation recorded in the region last year.
“Ang average inflation ng Cordillera sa taong 2022 ay 6.4% kumpara noong 2021 na 3.9% ay napakalayo po at kung ikumpara pa natin sa 2020 na 2%. Ito ay 4.4 percentage point increase from 2020 to 2022,” he said.
Inflation in CAR reached a 4.4 percentage point increase from 2020 to 2022.
PSA Chief Statistical Specialist Aldrin Federico Bahit Jr. explains the drop in the purchasing power of peso in the region for 2022.
Bahit shared that food and non-alcoholic beverages contributed 32.9% to the 2022 average inflation in the region followed by transport with 31.8% and Housing, Water, Electricity, Gas, and other Fuels with 20.8%.
The same commodity groups are also the contributors to the uptrend of inflation in the region in 2022. Transport’s share to the uptrend is 56.9% while housing, water, electricity, gas and other fuels is at 26.5%, and food and non-alcoholic beverages at 11.4%.
Due to this increase in prices of goods particularly in the three major commodity groups, the purchasing power of the peso in the region last year dropped by five centavos as compared to 2021.
“Yung one peso noong 2018, ang katumbas na lang nito ay 87 centavos noong 2022. Bumaba ito ng limang sentimo mula noong 2021 na ang katumbas ng piso ay 92 centavos,” Bahit explained.
With these effects of increase in prices of commodities, Toyoken emphasized the need to address inflation as it trickles down and affects the most vulnerable sectors of the region.
“This uncontrolled rise in prices reduces the value of household income. Iyong mabibili mo sana para sa pamilya ay kumokonti na lang at the same amount and it may result to higher poverty incidence later on,” she explained.
Although interventions such as cash transfer for the bottom poor, the Department of Agriculture’s Kadiwa ni Ani, and financial assistance to farmers and fisherfolk were implemented in response to inflation, Toyoken said that the government, the private sector, and the public as whole can explore alternatives to also address supply and demand flaws which can affect the prices of major commodities that drive inflation in the region.
“One alternative is to put in more private investment in the sectors that would address food shortages and utilities such as alternative energy which is the banner program of the Regional Development Council in response to the high prices of transport and electricity,” she shared.
With changes in prices over time, the PSA-CAR will continue to hold regular dissemination fora to help planners, local chief executives and other stakeholders in policy making and decision-making process. **JDP/JJPM-PIA CAR
