The inflation rate for May this year inched up to 3.9% from the 3.8% in April, with rice inflation still factor at 23% compared to the 23.9% in April.
Also, the latest inflation print is within the government’s target for 2% to 4% this year.
Philippine Statistics Authority (PSA) Undersecretary and National Statistician Dennis Mapa attributed last month’s higher inflation to the increase in the index of housing, water, electricity, gas, and other fuels. He added that the faster annual growth of the transport index also contributed to slight increase in the last month’s inflation rate.
“The uptrend in the overall inflation in May 2024 was primarily influenced by the higher year-on-year increase in the index of the housing, water, electricity, gas and other fuels at 0.9% during the month from 0.4% in April 2024,” the PSA said in a statement.
“The faster annual growth of the transport index at 3.5% in May 2024 from 2.6% in April 2024 also contributed to the uptrend of the overall inflation,” the PSA said in a statement,” it added.
In contrast, the following commodity groups registered lower inflation rates during the month:
a. Food and non-alcoholic beverages, 5.8% from 6.0%;
b. Alcoholic beverages and tobacco, 4.2% from 4.9%;
c. Clothing and footwear, 3.4% from 3.6%;
d. Health, 2.9% from 3.0%;
e. Recreation, sport and culture, 3.5% from 3.8%;
f. Restaurants and accommodation services, 5.3% from 5.4%; and
g. Personal care, and miscellaneous goods and services, 3.4% from 3.5%.
Notably, rice recorded a slower annual increase of 23 percent from 23.9 percent in April.
In a separate statement, the Bangko Sentral ng Pilipinas (BSP) said the latest inflation data is consistent with its expectations that inflation could temporarily accelerate above the 2% to 4% target range in the next few months as the adverse weather conditions caused by the El Nino impacted local agricultural production.
“The risks to the inflation outlook continue to lean toward the upside. Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and increase in global oil prices,” it added.
MEASURES TO MITIGATE INFLATION
For its part, the National Economic and Development Authority (NEDA) said that it is continuously stepping up efforts against persistent inflation drivers.
“The government will continue to implement lasting policy reforms to ensure we address the drivers of food and non-food inflation sustainably. We want to maintain a macroeconomic environment conducive to investment and high-quality job creation – an environment that would allow us to hit the Marcos administration’s development targets by 2028,” NEDA Secretary Arsenio M. Balisacan said.
“To help manage food inflation, promote policy stability and investment planning, and enhance food security, the NEDA Board has agreed to reduce the rice duty rate to 15% percent from 35% for both in-quota and out-quota imports until 2028,” Balisacan said.
The NEDA Board also approved the extension until 2028 of the reduced tariff rates on corn, pork, and mechanically deboned meat under Executive Order 50 series of 2023.
Balisacan said the Marcos administration aims to increase productivity to reduce food prices and shield consumers and the economy from the price volatility of food commodities in the global market.
“On the part of the Executive, we will continue to find supply-side solutions to help manage the price increases of other commodities and keep inflation within the target range in the months to come,” he said.
Also, the Department of Social Welfare and Development will lead in the implementation of the Food Stamp Program nationwide in July, aiming initially for 300,000 families in 10 regions and 1 million households by 2027.
(Photo from PNA by Joan Bondoc)
