June inflation rate could be PH’s highest hike after more than half a decade

Maria Romero
PUBLISHED July 4, 2018 04:38 pm
Graphics by Laila Villamor

(Inside Manila)  At the back of rainy season, new academic year, and weaker peso is a drastic inflation rate hike.

The Department of Finance (DOF) said on Tuesday that due to a low base last year, Philippines’ inflation rate most likely climbed from 4.6 % in May to 4.9 % year-on-year in June, which is our highest hike after more than five years. This is ahead of Philippine Statistics Authority June inflation rate release scheduled on July 5.

According to its latest economic bulletin, Finance Secretary and chief economist Gil S. Beltran said that compared to June 2017’s 2.5% annual inflation rate and zero month-on-month increase, this fluctuation is seemingly a notch higher.

Beltran said that the rate increase could be attributed to factors such as the 2.43 % month-on-month rise in prices of education-related goods and services and 2.27 % rise in vegetable prices usually accompanied by school opening and rainy season. This is in addition to the price increase of “sin” products such as alcoholic beverages and cigarettes.

Last month, the overall increase in food and alcoholic beverage prices likely accelerated to 5.6% from 3.04% in June 2017, but was slightly slower than the 5.75% recorded last May.

In June, alcoholic and tobacco products rose to 20.44 % year-on-year but tobacco alone jumped to 27.82 %.

DOF's latest data also showed that the Tax Reform for Acceleration and Inclusion (TRAIN) Law has largely contributed to the price increase of market commodities.

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