(Eagle News) – Inflation continued to increase this June at 5.2 percent, which is higher than the previous month’s 4.6 percent, and exceeding both government and market expectations.
This was the highest headline inflation rate for the Philippines since October 2011, when the country last posted a 5.2 percent inflation.
It is also the highest since 2013 based on the five-year monitoring of the Philippine Statistics Authority’s year-on-year inflation rate.
The inflation rate in June was also way above the 2.5 percent in June 2017.
“It was primarily brought about by higher annual rate posted in the heavily-weighted food and non-alcoholic beverages index at 6.1 percent,” the PSA report said.
The PSA also noted increase in food prices, where the “food alone index” went up by a high of 5.8 percent this June, with high mark-ups noted in rice, corn, meat, vegetables and other sugar products.
“The country’s food alone index went up by 5.8 percent in June 2018. It was posted at 5.5 percent in the previous month and 3.1 percent in June 2017,” the PSA report prepared by Undersecretary Lisa Grace Bersales said.
Bersales is also the National Statistician and Civil Registrar General.
The PSA report observed “higher annual mark-ups” in the indices of the following food groups:
• Rice (4.7%);
• Corn (14.1%);
• Other Cereals, Flour, Cereal Preparation, Bread, Pasta and Other Bakery Products (2.4%);
• Meat (5.0%);
• Vegetables (8.6%);
• Sugar, Jam, Honey, Chocolate and Confectionery (3.9%); and
• Food Products not Elsewhere Classified (3.1%).
“Those for the rest of the food groups either slowed down or remained at their previous month’s rate,” the PSA report said.
The PSA also noted “faster annual increments” registered in the indices of the following commodity groups:
• Alcoholic Beverages and Tobacco (20.8%);
• Housing, Water, Electricity, Gas, and Other Fuels (4.6%);
• Furnishing, Household Equipment and Routine Maintenance of the House (3.0%);
• Transport (7.1%);
• Communication (0.4%); and
• Education (4.0%).
The other commodity groups had slower annual gains except for clothing and footwear index whose rate remained at 2.2 percent.
“Excluding selected food and energy items, core inflation escalated by 4.3 percent in June 2018, faster than the 3.6 percent growth in May 2018 and 2.1 percent in June 2017,” the PSA noted.
In Metro Manila, higher year-on-year inflation was noted at 5.8 percent this June 2018.
“It was pegged at 4.9 percent in the previous month and 3.1 percent in June 2017,” the PSA said comparing the inflation rates in the National Capital Region.
In Metro Manila, higher annual hikes were recorded in the indices of the following commodity groups:
• Food and Non-Alcoholic Beverages (5.7%);
• Housing, Water, Electricity, Gas, and Other Fuels (7.5%);
• Furnishing, Household Equipment and Routine Maintenance of the House (3.1%);
• Transport (7.7%);
• Communication (0.4%); and
• Education (5.5%).
Outside Metro Manila, inflation also moved faster at 5.1 percent in June 2018.
“In the previous month, inflation settled to 4.6 percent and in June 2017, 2.3 percent,” the PSA said noting the rates in areas outside NCR.
Higher inflation were posted in all the regions except Region IV-B (MIMAROPA). The highest annual rate of 7.7 percent was observed in the Autonomous Region in Muslim Mindanao (ARMM) while the lowest was seen in Region III (Central Luzon) at 3.0 percent, the PSA report said.