Inflation peaks to new over 5-year high of 5.7% in July
Inflation accelerated to a fresh over five-year high of 5.7 percent in July, the government reported Tuesday.
As such, headline inflation or the rate of increase in prices of basic goods and services averaged 4.5 percent during the first seven months, above the government’s full-year target range of 2-4 percent for 2018.
The seven-month average already hit the upper end of the Development Budget Coordination Committee’s forecast of 4-4.5 percent.
Economists earlier projects faster inflation last month on increased transportation costs as well as higher cigarette prices.
To recall, the minimum jeepney fare was hiked to P9 from previous P8 since July 9.
Also, cigarette excise tax further rose to P35 per pack starting July under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Last January 1, the unitary excise tax slapped on cigarettes rose to P32.50 per pack from P30 a pack last year.
Signed by President Duterte last December, the Train Law or Republic Act No. 10963 jacked up or imposed new excise taxes on cigarettes, sugary drinks, oil products and vehicles, among other goods, since the start of 2018 to compensate for the restructured personal income tax regime that raised the tax-exempt cap to an annual salary of P250,000. /kga
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.