Hike in food prices expected to accelerate in August
By Michelle V. RemoPhilippine Daily Inquirer
MANILA, Philippines—The increase in food prices may accelerate this month given the devastation to some agricultural areas caused by Typhoon Gener, but overall inflation is likely to remain within expectations.
This was according to BSP Governor Amando Tetangco Jr., who said inflation in August and succeeding months would also be influenced by declining prices of oil and other major commodities in the world market.
Falling prices of oil will help temper domestic inflation, he said. Also, the anemic performance of advanced economies was dampening global demand, thus helping keep inflation in check.
“We have to wait for the assessment of the Department of Agriculture [on the impact of the typhoon] on food production. If there will be an impact on inflation, it will be on prices of food items,” Tetangco said.
Tetangco said the BSP would be coordinating with the DA to determine if the impact of the typhoon on food inflation would indeed be significant and if policy action to help temper the inflationary effects was needed.
In the first semester, inflation in the country averaged at 3 percent. This was partly credited to declining global oil prices.
In June alone, inflation stood at 2.8 percent. This is considered very slow, given that inflation this year is expected to range from 3-5 percent.
Inflation for food products alone stood at an even slower pace of 2 percent in June, mainly due to the favorable production by the agriculture sector.
Food accounts for about 40 percent of the consumer basket of average Filipino households.
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Tags: Business , food prices , Inflation , oil prices
