Higher food prices, typhoon worsen Philippines poverty

Officials in the Philippines say poverty has worsened in the first half of 2014 due to a rapid rise in food prices and the lingering effects of a deadly typhoon, pushing the number of Filipinos living in poverty to 25.8 percent, up 1.2 percent year-on-year.

The worsening poverty in Asia's second fastest growing economy was announced by the Philippine Statistics Authority in a statement on Friday.

The growing impoverishment followed super typhoon Haiyan that devastated the central Philippines in early November 2013, killing more than 7,350 people.

The government agency deems a person living off USD 1.33 or less per day as poor in the Philippines.

Economic Planning Secretary Arsenio Balisacan said the average income of Filipinos rose by 6.4 percent in the first six months of 2014, but noted that "the very high prices of food wiped out the gains in per capita income."

Balisacan said the domestic price of rice, the staple cereal that accounts for 20 percent of the budget of low-income families, also rose 11.9 percent due to lean harvests and less imports.

Despite the ravages of Haiyan, the Philippines economy grew 6.1 percent last year, second only to China among Asian economies.

The Filipino government forecasts an economic growth of 7-8 percent this year, raising hopes it would make further inroads on reducing poverty.

SF/KA/SS

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