KMU says June inflation data misleading, part of Arroyo’s desperate PR bid

‘Instead of flaunting inflation data, focus on wages’

Labor center Kilusang Mayo Uno labeled the June inflation data released by the National Statistics Office as misleading, saying a proclamation of a 22-year low inflation rate is an insult to poor Filipino families currently bearing the brunt of the economic downturn.

NSO said inflation rate went down to 1.5 percent in June from 3.3 percent in May. It also claimed that the negative movement in the fuel, light and water index was one of the main factors that pushed down inflation.

“While the Arroyo regime continue to bank on decreasing inflation rates, prices actually remain very high. There was never a general decrease in the prices of commodities in previous years, so how can a supposed slowdown in inflation rate be significant to thousands of poor families?,” said Roger Soluta, KMU deputy secretary general.

“Also, the problem with monthly reports on inflation rate is that it does not account for wage level comparison, which means that it is very one-sided. At this point, anyone can attest that wages hardly meet the rising cost of living in our country,” said Soluta.
Soluta also stressed the IBON Foundation survey that indicate majority of Filipinos have trouble buying enough food and paying for transportation. He also cited that a kilo of rice for instance remains fixed at P35-P40, while prices of pork and vegetables did not go down.

“Also, a new round of oil price hikes is very imminent in the face of recent announcements by oil companies, which will again cause price spikes on basic commodities,” said Soluta.

 Soluta also said that data from NSO itself will tell that the purchasing power of Filipinos experiences a year-on-year decline, with the peso’s real value dropping from P0.94 in 2001 to P0.63 in May this year.

“The Arroyo regime desperately tries to project sound statistics on the economy to gain positive public perception in time for the countdown to 2010 elections. However, no good statistical news can clear the mess that this regime has made on the lives of millions of Filipinos suffering from wage cuts and retrenchment,” said Soluta.

“At this point, a legislated wage hike is the most welcome measure that the government can make, instead of flaunting figures that are far from the real situation of the people,” said Soluta. ###