Rising prices of goods and services have made it urgent for government to institute price controls to moderate high and still rising inflation.

By Ibon FOUNDATION
Posted by Bulatlat

Prices of basic goods and services rose by 7.2 percent in August alone, raising the average inflation rate for the first eight months of the year to 8.1 percent, substantially higher than the 6.8 percent recorded in the same period last year. 

The rising inflation rate was attributed to high oil prices, which was reflected not only in the fuel, light and water commodity group, but also in services. The increase in the prices of fuel, light and water slowed slightly to 18.7 percent, while the cost of services went up by 10 percent. Expect inflation to soar even higher once the expanded value added tax (EVAT) takes effect. 

Government recently released its own price increase estimates of oil products once the EVAT comes into force. It also projected power costs to rise by six percent. But these preliminary estimates could be understated, given the escalating world prices of crude oil and the constant rounds of oil price hikes. 

Supporters of the EVAT claim that the poorest Filipinos would not be as affected by the tax measure because they get their needs from wet markets. But market vendors say that prices of vegetables, fruit and meat have already increased due to the higher cost of transporting these to market. 

Hence, the government must immediately impose price freezes on basic commodities and services, including oil, water and electricity. It should also provide subsidies and price supports to protect the livelihood of local farmers. 

Government should also grant the organized labor sector’s demand for a P125 across-the-board nationwide wage hike to raise workers’ wages to decent levels. Based on IBON estimates, the daily cost of living for a family of six in Metro Manila has already reached P637.24 as of August, a nine percent increase from the P584.58 recorded in the same period last year. Bulatlat

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