Fertilizer costs drive up daily spending of Metro Manila households

MANILA, Philippines - Metro Manila-based households need to shell out more money to cope with the rising cost of living which may be traced from the hike of fertilizer prices, data from the National Statistical Coordination Board (NSCB) showed. The agency said a family of five living on an average daily expenditure of P337 will need an additional amount of P43 to cover expenses which rose as inflation hit 12.5 percent in August. The NSCB attributed the increase on the rising cost of fertilizers, which in turn drove up the prices of agricultural products. Fertilizers account for 30 to 40 percent of the total cost of production of agricultural crops. The price of major fertilizers like urea, ammonium sulphate and ammonium phosphate rose by 38.29 percent to 80.05 percent from January to July. The NSCB said this increase may be among the resons for the hike in palay prices, which jumped 50.7 percent from April to June. The monthly retail price of one kilo of rice averaged at P38.76 in July, 57 percent higher than the P24.69 per kilo average in the same month last year. The NSCB said the cost of milled rice and corn will likely increase by 0.12 percent and the cost of trade services will go up by 0.03 percent due to higher fertilizer costs. It is also expected to drive up the prices of milled sugar, vegetables, banana, other fruits and nuts, as well as the services of eating and drinking places. - GMANews.TV