The province of Misamis Occidental in Mindanao recorded an impressive inflation rate of 0.4% in September, lower than the national inflation figure of 1.9%.

The 0.4% inflation rate of the province is also lower than the 1.9% it logged in August.

According to the Bangko Sentral ng Pilipinas (BSP), the lower inflation rate in Misamis Occidental means people can buy more with their money because prices are lower compared to August.

Translated, a peso in 2018 is worth 80 centavos in September 2024, further explaining that the same basket of goods and services worth P100 in the year 2018 is worth P125.6 in September 2024.

Ramonnetto S. Gervacio, the acting bank officer, and a regional economic affairs staff from the BSP Mindanao Regional Office, said that the province’s 0.4% inflation in August is below the government’s target of 2% to 4% this year. This enables consumers to purchase more, thereby increasing the purchasing power of pesos.

He explained that when the inflation rate is within the target range, it means that prices are stable.
Gervacio, however, said that a too low inflation rate could be detrimental to farmers and producers.

“We can’t set our prices too low because it won’t encourage our producers. For example, if the price of a particular crop is too low, farmers won’t plant it since they will incur losses,” he said in the vernacular.

As the BSP highlights consumer protection mechanisms during October in celebration of Consumer Welfare Month, Gervacio explained that consumer welfare is a shared responsibility, with one being the consumer, the second being the service provider, and the third being the regulator.

(PHOTO IS GOOGLE MAP OF MISAMIS OCCIDENTAL)