Lower Local Oil Price Sigh of Relief to Businesses

Businesses around the country are getting a huge sigh of relief as oil prices in the country have consistently gone down for weeks, also lowering the price of their goods.

Lower oil prices led to a decrease in the price of produce such as vegetables and fruits, sugar, and chicken, which according to a statement by the Bangko Sentral ng Pilipinas (BSP), are “expected to contribute to easing price pressures during the month.”

Moreover, this also led to a decrease in the inflation rate in the country, as the BSP reported an inflation rate of between 7.4 percent and 8.2 percent.

This comes as the BSP recorded the inflation rate at 8.6 percent in February of this year, only a 0.1 percent decrease from the whopping 8.7 percent inflation rate during the prior month, which was a 14-year high for the country.

This was brought about by price increases in commodities such as meat, fish, rice, and eggs.

The country’s financial agencies still expect the inflation rate to be higher than the targeted 2 percent to 4 percent inflation rate of the government for 2023, but as long as the oil prices in the country are going down, businesses in the country will continue to be relieved, which in turn will lead to lower price of commodities for consumers. (GFB)