MANILA, Philippines – Micro-retail businesses are complaining that the rising cost of goods dented their earnings because customers are cutting down on consumption.
The Philippine Association of Stores and Carinderia Owners (PASCO) expressed their concern about the rising cost of goods on Friday, October 5, as inflation surged to a fresh 9-year high of 6.7% in September.
“This continuing inflation rate hike is racking up the prices of goods even higher, this might cause our micro-retail businesses to shut down”, said Vicky Aguinaldo, PASCO President.
The group also complained the effects of the tax reform for acceleration and inclusion (TRAIN) law.
The Philippine Statistics Authority (PSA) reported that food and non-alcoholic beverages climbed to 9.7%, the highest since March 2009. (READ: Persistent high inflation may slow down poverty reduction – World Bank)
The Bicol region once again topped the list of the highest recorded food inflation at 14.6%.
Ilocos region (13.6%) and Mimaropa (11.3%) also registered double-digit food inflation.
Food is the heaviest among all commodity groups considered in computing for the inflation rate. As seen on the graph below, Bicol also topped the list in overall inflation per region.
Areas directly hit by Typhoon Ompong (Mangkhut) registered higher prices of vegetables.
For instance, Ilocos Region’s vegetable prices climbed by 49.2%.
Regions where prices of fish was high last month mostly remained unchanged, if not decelerated in September.
However, regions that registered relatively low fish inflation catched up.
In a joint statement, the government’s economic team said that they “understand that many are feeling the hit of a faster inflation rate, particularly those who toil so hard just to keep up.”
“We remain committed to our goal of ensuring price stability, along with our overarching aim of translating sustained broad-based economic growth to comfortable lives for everyone,” they added. – Rappler.com