Falling rice prices contribute to inflation decline in Bangsamoro region

HIGH YIELD This rice farm in Barangay Kan-mindus, Luuk, Sulu, shown here on Aug. 7, is hailed as one of the success stories in the Bangsamoro region when its yield increased after receiving technical assistance, farm inputs and regular monitoring from the Ministry of Agriculture, Fisheries and Agrarian Reform. Sulu is no longer part of the Bangsamoro but continues to receive services from the regional government. —PHOTO FROM BANGSAMORO GOVERNMENT FACEBOOK PAGE

DAVAO CITY—The inflation rate in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) registered a continuous drop in October and November this year, which was hailed for lowering the cost of food for the poorest households in the region.

Akan Tula, officer in charge for the Philippine Statistics Authority (PSA) in the BARMM, said the inflation rate dropped further to negative 1.4 percent in the region in November, slightly lower than the negative 1.3 percent recorded in October and down from 1.9 percent recorded in November last year, according to the PSA report released on Dec. 16.

Tula said the negative inflation was largely driven by cheaper rice and other basic food items in the region.

He said rice continued to be the single biggest contributor to the decline in the inflation rate in the region. It recorded a negative 18.1 percent inflation in November, slightly lower than the negative 17.9 percent in October. The rate pulled down the overall inflation rate of the region by negative 2.87 percentage points, Tula said in a report.

The main commodity group that contributed to the decline was food and nonalcoholic beverages, which recorded an inflation rate of negative 3.3 percent, accounting for 130.9 percent share of the region’s overall inflation.

Within this group were key food items that continued to register negative inflation, led by rice, followed by tomatoes, cane sugar and meat of bovine animals, which contributed to the downward spiraling of prices.

Other commodity groups that also contributed to the negative inflation included personal care and miscellaneous goods and services, which posted a negative 0.1 percent and accounted for a 13.5 percent share; and transportation, which registered 1.7 percent and contributed 7.4 percent to the overall decrease.

December spending

Edward Eloja, chief of the statistical operation and coordination of the PSA-BARMM, however, explained that the region continued to post a negative inflation this year because of the high inflation rate last year. He also said that it still remained to be seen whether the negative inflation trend would continue in December, as increased spending during the holidays would tend to push inflation up.

He told consumers during the online Stat-Talakayan discussions to be aware of their rights and immediately report to authorities if they noticed an exorbitant increase in prices of commodities and possible hoarding by traders, especially during the holidays.

In Cotabato City, inflation slowed to negative 1.5 percent in November from negative 2.0 percent in October.

Among the BARMM provinces, Basilan posted 0.2 percent inflation rate in November, up from the negative 1.6 percent it registered in the previous month of October; Lanao del Sur, negative 1.4 percent, from negative 1.0 percent; Maguindanao, negative 3.3 percent, from negative 2.9 percent; Sulu, 0.5 percent, from 1.0 percent; and Tawi-Tawi registered 0.0 percent, from negative 1 percent.

As of the 2020 census, the BARMM has a population of 4.6 million, which is expected to drop to 3.6 million with Sulu (population: 1 million) no longer a part of the region.