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Saturday, June 23, 2007

 

Cost of living in 2006 rose due to inflation

By Darwin G. Amojelar, Reporter

KEEPING one’s family from sliding into poverty became costlier last year due to higher consumer prices and an increase in the sales tax, according to the National Statistics Coordination Board (NSCB).

Romulo A. Virola, NSCB secretary-general, said the country’s monthly poverty threshold stood at P6,211 last year, up from P5,853 the previous year.

This means that Filipino families of five should have earned P204 daily to sustain their minimum basic food and nonfood needs.

The NSCB explained that the threshold was based on the prevailing prices in 2006. Data from the National Statistics Office (NSO) showed that the inflation rate rose 6.2 percent.

The government also last year raised the value-added tax (VAT) rate by 20 percent in a move aimed at generating more revenues and trimming its budget deficit.

In Metro Manila, families of five should have earned a monthly income of P8,254, of which P4,920, or 60 percent, should have been allocated for basic food needs and P3,334 for basic nonfood needs.

In rural areas, the poverty threshold stood at P5,885 last year from P5,540 in 2005.

Among provinces, excluding the four districts of the National Capital Region (NCR), the annual per-capita poverty threshold was highest in Batangas with P18,404 followed by Cavite, P 17,876 and Abra, P17,682.

The poverty threshold was lowest in Siquijor at P 12,016, Negros Oriental, P12,120; and Zamboanga Sibugay, P12,153. Of the 10 provinces with the lowest annual per-capita poverty thresholds, two were in Luzon, five in the Visayas, and three in the Mindanao areas.

  
 

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