Crisis Time: How Bohol Can Survive

With the country bracing for the worst times as central bank authorities now apprehensive of the country's inflation jumping to 11% in July-September this year, a local trade and industry officer says the situation may not be as bleak for Bohol.

While a double digit inflation rate may be the worst case in the country since May 2005. This as the Bangko Sentral ng Pilipinas (BSP) noted 8.3 percent inflation rate in April from 6.4 percent in March, this owing to higher food prices.

Consumers who monitor the steady increase in prices of commodities have aired concern just as increases in salaries and wages have been dismal, further aggravating the situation of lessened purchasing power of money.

However, Jose Hibaya, Chief trade and industry specialist at the local Department of Trade and Industry says the effect on prices may not be too harsh in Bohol and in Central Visayas.

"Inflation may not be as devastating in the Visayas, as we have the most efficient channel of distribution, which affects the prices of goods and commodities," he said.

In Bohol in fact, he admitted the presence of key distributors who deliver the goods to the towns, instead of retailers paying for the transport of the same helps keep the prices at bay.

At least, the factor of distribution costs would be out of the equation, he explained over the Kapihan sa PIA Thursday and aired live at station DyTR. 

If there are increases in prices, it would be close to the average rates of .5 to .10%, which the office has monitored since the food and oil price hikes were felt by consumers, he hinted.

He also added, "manufactured goods are not expected to pick up in price following forged agreements with the country's manufacturers." 

He said manufacturers, during a recent meeting, have agreed to absorb the incremental cost of production, which would help soften the impact of prices of goods.

When manufacturers absorb the costs, these are not passed on but are recouped by spreading out the absorbed cost, he revealed.

If the manufacturers do not pass on the cost of production to consumers as agreed, at least in the next three months, we do not see that much spike in prices, he explained.