NEDA warns of price increase on goods

CEBU, Philippines - Consumers may have to expect a slight rise in prices of goods in the last quarter this year due to the holiday season demand and effects of El Niño, a local official of the National Economic and Development Authority said.

Efren Carreon, NEDA director in Central Visayas, said in an interview Wednesday that prices of goods and services in the region had stabilized as inflation continued to go down.

Carreon, however, warned that: “We might see a slight spike in the prices of commodities particularly of food items in the last quarter of this year and the early part of next year as the effects of El Niño start to kick in.”

Carreon also cited the expected rise in consumer demand during the holiday season as another factor. He said prices of basic goods during the Christmas season may tend to increase because of the rise in demand.

Bohol, Central Visayas’ food basket, has been identified as one of the areas where the El Niño-induced dry spell might be severe and will negatively affect agriculture.

NEDA reported that Region 7’s inflation dropped to a record low of 0.9% in September.

Nationwide, inflation remained steady in October at 0.4% due to slowdown in food, energy and fuel prices.

In a November 5 statement, Economic Planning Secretary Arsenio Balisacan warned of upside risks of El Niño and its impact on consumer prices.

“Upside risks could come from the stronger and prolonged El Niño’s impact on food prices and also possible increase in utility rates given the pending petitions for power rate adjustments,” Balisacan had said.

He said there is a need to ensure supply adequacy and to intensify efforts in areas that are vulnerable to adverse effects of prolonged dry spell.   (FREEMAN)