Inflation stays at 15-month high of 1.9%
THE RISE in consumer prices stayed at 1.9 percent year-on-year in July, the same as in June, as prices of alcoholic drinks and tobacco inched up while prices of food and other drinks eased.
The Philippine Statistics Authority (PSA) said in its regular inflation report released Friday that the figure for July was more than twice the 0.8 percent recorded in the same month of 2015.
Also, July inflation was the highest recorded over the past 15 months or since the 2.2 percent in April last year. During the intervening months, yearly inflation was lowest at 0.4 percent in September and October 2015.
The latest results brought average inflation in the first seven months of 2016 to 1.4 percent, up from 1.3 percent in the first semester.
In July, the food index alone improved to 2.8 percent from 3 percent in June, the PSA said.
“Except for the index of rice, which had a zero annual growth, the rest of the food groups either had higher annual mark-ups or retained their previous month’s rate,” the agency added.
Nationwide, faster gains were seen in alcoholic beverages and tobacco at 5.8 percent; furnishing, household equipment and routine maintenance of the house, 2 percent, and recreation and culture, 1.8 percent.
At the same time, slower price increases were seen in food and non-alcoholic bever ages at 2.7 percent; health, 2.4 percent; communication, 0.1 percent, and education, 1.8 percent.
Upticks in clothing and footwear remained at 2.4 percent while the decrease in prices of housing, water, electricity, gas and other fuels eased to -0.2 percent from -0.4 percent
In the regions, inflation was fastest in Central Visayas at 3.4 percent and slowest in Metro Manila, Calabarzon and Bicol—all at 1 percent.
The government expects the low inflation trend in the first seven months of 2016 to continue for the rest of the year considering the expanding productive capacity of the domestic economy, persistently low oil prices, solid private household consumption and investment, buoyant business and consumer sentiment, and adequate credit and domestic liquidity.”
