Bu-lat-lat (boo-lat-lat) verb: to search, probe, investigate, inquire; to unearth facts

Issue No. 31                       September 16-22,  2001                    Quezon City, Philippines

Daily Cost of Living Increased by P13
Since Arroyo Took Power

Government scoffs at organized labor’s call for a P125 (US$2.44) daily wage hike without realizing that cost of living has been on the rise through the years. President Gloria Macapagal-Arroyo’s assumption into office did not change this trend, based on Bulatlat.com’s computation of daily cost of living as of August 2001.

By DANILO ARAÑA ARAO
Bulatlat.com

Cost of living is on the rise even under a regime guided by “New Politics” and “New Governance.” Latest Bulatlat.com computations show that daily cost of living has increased by as much as P13 (US$0.25) from January to August 2001.

When President Gloria Macapagal-Arroyo took over the reins of government in January 2001, IBON Foundation, an independent research think-tank, pegged daily cost of living for a family of six at P500.15 ($9.75) in the National Capital Region (NCR). In areas outside NCR, IBON estimated daily cost of living for a family of six at P382.63 or $7.46 (agricultural areas) and P402.57 or $7.85 (non-agricultural areas).

Based on the August 2001 consumer price index (CPI), Bulatlat.com computations show that daily cost of living stands at P513.98 ($10.02) in the NCR, while families with six members living outside NCR need P391.30 or $7.63 (agriculture) and P411.69 or $8.02 (non-agriculture) to meet food and non-food requirements everyday.

This means that in Metro Manila, a family of six needs P15,419.40 ($300.69) to survive in one month. A minimum wage earner’s salary of P5,500 or $107.25 monthly (based on the legislated daily wage rate of P250 or $4.87) can only fulfill 36% of his or her family’s monthly living cost requirement.

On the other hand, the average monthly minimum wage salary in non-agricultural areas outside NCR is roughly P3,926.26 or $76.56 per month (based on the average daily wage rate of P179.83 or $3.51), a mere 32% of monthly cost of living pegged at P12,350.70 ($240.85) for a family of six

The Bulatlat.com computations are based on the current CPI of the National Statistics Office (NSO) which uses 1994 as its base year and the 1988 estimates of daily cost of living released by the National Wages and Productivity Board (NWPB).

It may be recalled that the Social Weather Station (SWS) in its July 2001 nationwide survey disclosed that 87% of its respondents expressed satisfaction with a budget of P15,000 a month.

The SWS pegged the median poverty threshold at P9,000 which means that those surveyed do not feel poor if they have such a household budget per month.

The same survey also showed that 66% of surveyed households consider themselves poor in July 2001 compared to 59% three months before (i.e., April), or nearly three months after Arroyo took power. Bulatlat.com

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