Long drought to cause inflation - BSP's Guinigundo
Negros Occ. (23 March) -- Central Bank Vice-Governor Diwa Guinigundo said the prolonged drought brought about by El Niņo Phenomenon will affect the flow of economy and will eventually "impinge on inflation."
In a press conference here during the conduct of Public Information Campaign, he quoted Pagasa declaring the dry spell to extend up to June or July causing damage to crops and animals and even disrupting operations of various manufacturing companies and business sectors across the country.
He said some companies may not operate normally due to the extreme heat causing periodic power outage and therefore result to the decline of manufactured goods in the market that may cause prices of commodities to rise.
Guinigundo said Department of Agriculture data show that El Niņo Phenomenon damages now reached P11B although its impact on the GDP of the country cannot be determined at the moment as the NEDA has not yet come up with its data.
In Negros Occ. preliminary report from agricultural agencies here has placed damage in livestock and poultry at P6.4 Million, palay P19M, corn P5.7M and in High value Crops P1.1M. (PIA-LOL) [top]