BY GEROME DALIPE IV
ILOILO City – The re-establishment of the Negros Island Region (NIR) will have significant economic implications for Western Visayas, the Philippines Statistics Authority (PSA) in Region 6 said.
While the re-establishment of NIR offers opportunities for economic growth and development that could benefit both regions, it will also have a significant impact on Region 6’s economic figures.
During a press conference on the Consumer Price Index in Western Visayas for May 2024, Miguel Gallego, PSA-6 statistical specialist, said Bacolod City and Negros Occidental have huge contributions to the overall inflation rates of Western Visayas.
“Their (Bacolod City and Negros Occidental) separation will certainly have a huge effect on the overall inflation rate of Region 6,” said Gallego.
Negros Occidental posted a lower inflation rate compared to April 2024, recording the lowest at 4.2 percent.
Both highly urbanized cities in the region recorded upward inflation rates last month. Iloilo City’s monthly inflation rate is 1.3 percent from 0.8 percent in April 2024, and Bacolod City at 4.5 percent from 3.9 percent in April.
Gallego noted that the exclusion of Negros Occidental and Bacolod City the regional economic basket of Western Visayas will have a huge effect on the region’s overall inflation rate.
“If we based on the economic weight per province, Negros Occidental has a huge contribution to the regional inflation rate. For sure, it will have a huge effect if they (Negros Occidental and Bacolod City) are no longer part of Region 6,” Gallero stressed.
Nelida Amolar, PSA-6 officer-in-charge, earlier said the departure of Negros Occidental, including Bacolod City, could reduce the region’s economic performance by almost 40 percent.
Amolar cited the huge contributions of Negros Occidental, particularly Bacolod City, to the region’s economic growth, helping Region 6 achieve a “trillionaire” mark.
Meanwhile, inflation, or the increase in prices of goods and services over time, in Western Visayas increased further to 4.3 percent in May 2024, from 4.1 percent in April 2024, the PSA-6 reported.
The regional average inflation rate from January to May 2024 is 3.2 percent. In May 2023, the inflation rate was higher at 7.1 percent, the agency stressed.
Western Visayas’ inflation rate hike in May 2024 was mainly due to the slower decline in the index of housing, electricity, gas, and other Fuels at -0.3 percent last month from -2.2 percent in April 2024.
The transport sector is also the second top contributor to the inflation rate increase with 3.8 percent inflation in May, from 3.1 percent in April 2024.
The PSA-6 also recorded a higher inflation rate in the indices of clothing and footwear at 3.1 percent and restaurants and accommodation services at 5.5 percent in May 2024./PN
