This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. V, No. 31, September 11-17, 2005
Need for Price
Controls Now More Urgent 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 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 © 2004 Bulatlat
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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.