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February inflation hits 5-month high

Sin products said to account for rise in consumer prices

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Due to the double-digit spike in the prices of so-called sin products such as cigarettes, the rate of rise in consumer prices came to a five-month high of 3.4 percent year on year in February, according to the National Statistics Office. AFP/JAY DIRECTO

The rate of rise in consumer prices came to a five-month high of 3.4 percent year on year in February due to the double-digit spike in the prices of so-called sin products.

The National Statistics Office also attributed growth in inflation to faster price hikes in the heavily weighted food and non-alcoholic beverage group.

The NSO on Tuesday reported that inflation revved up from 3 percent in January and 2.7 percent in February 2012.

The latest inflation figure is the highest since the 3.6 percent posted last September. This puts average inflation for the first two months of the year at 3.2 percent.

With higher excise tax rates taking effect in February, the index for alcoholic beverages and tobacco surged by 29 percent year on year—much faster than the 17.3 percent observed in January.

The uptick on food and non-alcoholic beverage also came out faster at 2.9 percent from 2.3 percent the previous month.

But on a sequential basis, prices rose by 0.3 percent compared with the levels seen the previous months. It was slower than the 0.5-percent increment seen in January.

The recent inflation data reflected the DBS Group’s forecast. Earlier this week, DBS said that the index would creep up further as more signs of rising consumer prices emerged.

The financial service provider said in a research note that inflation could no longer be contained as in the past year because of faster economic growth.

The same observation goes with the appreciation of the peso, DBS said, which had helped in reducing inflation for imported goods.

“However, a closer look into the breakdown of the CPI basket does show some early signs of demand-pull price pressure,” the bank said.

“More signs of inflation are likely to appear amid robust economic growth, especially once construction [of] public-private partnership (PPP) projects kicks in,” DBS added. “Oil prices will be another factor to watch.”


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Tags: Consumer Issues , Inflation , Philippines , sin products , sin taxes

  • rodben

    Sige wag nyo awat Noy2 gulo Sabah para taas ko mga paninda ko para laki tubo ko at ako naman bigay Milyon mga kandidato ngayon diba?

  • rodben

    This is a Straight path( tuwid na daan) to the Elite Noy2 supporters and Spoiled path( Bulok na daan) to poor Pinoys….need to educate the voters/ Pinoy voters are for sale.. thats why Filipinos are suffering now…

  • Albert Einstien

    sin products as cover story for HIGH INFLATION is just cracy to HIDE INCOMPETENCE..sin products is just one small sector ….lol

    it ONLY mean ONE THING…MORE HARDSHIPs  on never ending increase  & SKYROCKETING   PRICES of  EVERYTHING…from basic commodities, residential, commercial, agricultural & industrial good & services…MONEY VALUE is SHRINKING…under pnoy….yet he is TELLING people of good economy….LIES..!

    Inflation means that the general level of prices is going up, . More money will need to be paid for goods (like a loaf of bread) and services (like getting a haircut at the hairdresser’s). Economists measure inflation regularly to know an economy’s state

  • rouelcalzita

    NSO is reporting an inaccurate data…
    But in reality government and private employees if would be asked, they will answer that, they are just fixing up as much as necessary for something is used for.

  • parefrank

    The beer loving Pinoys? There are western countries with a higher per head consumption but there are not that many drunkards who care for alcohol but not the family.
    There, alcohol  and tobacco are high taxed and this money is supporting the health system which has to bear the alcohol and nicotine health problems. And it also funds the government support of age pension.
    Like high gasoline tax, which then supports new roads and maintenance. In RP, look where the road user tax is going. Besides, does anyone believe this numbers? If we go shopping, without any sin products, our purchase has increased about 15% since November for the same goods. Just soup bones are soon more expensive than real meat two years ago, from 45 to now 115 peso a kilo. And most other foods oo or, when packed, the content is now less, like 375 gram instead 500 gram. Annd the they talk about 3 or 4% inflation.

  • Touch_Me_, Nuts!

    “Sin products account for rise in consumer prices”- NSO

    Always a short-cut answer, and no one takes responsibility from bad economic policies. Such explanation even defies the law of supply and demand. Nakasanayan na ng pamahalaan na linlangin ang mga mamayan, kaya tuloy wala ng naniniwala sa gobierno. Bakit pa tayo nagbabayad ng buwis kung lokohan din lang pala?

  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    No matter how high they set the price for cigs and liquor, the beer loving Pinoys will always drink. Walang tatalo sa inuman na may kasamang chicharon, sisig, san mig at red horse. Nako! Samahan mo pa ng chicks! Solve na solve na! – hahahahaha



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