Mindanao inflation rate pulls down national average

DAVAO CITY, Philippines – The slow rise in consumer prices in Mindanao has helped maintain a low inflation rate on the national level, according to the central bank.

Low inflation bodes well for the economy as people and businesses tend to spend more, driving up demand for goods and services.

As of June 2012, the Bangko Sentral ng Pilipinas (BSP) said inflation rates in Mindanao provinces were lower than the national average of 2.8%.

Inflation was 1.7% in the Davao region during this period, 1.8% in Zamboanga Peninsula, 2% in the Autonomous Region of Muslim Mindanao and 2.6% in the Socsksargen (South Cotabato, Sultan Kudarat, Sarangani and General Santos City) region.

“This good economic condition and low inflation rates in Mindanao would help pull down and lower the average inflation rate in the country,” BSP Deputy Governor Diwa Guinigundo said.

He attributed the lower inflation rates in the island to the active fruit production, food processing, and exporting of seaweeds.

“The lively economic activities in Mindanao contributed well to the low inflation rates,” Guinigundo said.

However, the regions of Caraga and Northern Mindanao experienced relatively higher inflation rates of 4.1% and 3.7%, respectively.

Guinigundo said inadequate production resources including infrastructure and pre-and post harvest facilities might explain the higher inflation rates.

With stable consumer prices in the island, the BSP is optimistic that the economy of Mindanao will grow stronger this year. – Rappler.com