INFLATION RATE CONTINUES TO RISE, MAY RISES TO 3.9 PERCENT

Increase on prices of goods and services contributed much on inflation (Photo courtesy of Reuters/GMA News)

The Philippine Statistics Authority (PSA) reported that for five consecutive months, the inflation rate to 3.9% in the Philippines continue to increase. The faster increases in the cost of consumer goods, services, electricity, and transportation are the primary contributors on the inflation rate.

National Statistician and PSA chief Claire Dennis Mapa said, “the primary reason for the faster inflation rate in May 2024 versus April 2024 was the faster increase in the prices of Housing, Water, Electricity, Gas and Other Fuels with 0.9% rate from 0.4%. This had a 56.8% share in the increase in the overall inflation rate in the country.”

“Major contributors to the increase in Transport inflation were the faster increase in the prices of gasoline at 5.2% from 3.4% and diesel at 7.2% from 4.2%,” he added.

In November 2023, the inflation rate kicked in 4.1%, the month of May was the fastest reading in the previous six months as well as the fastest so far this year. When compared to the 6.1% pace recorded in May 2023, May's print is slower.

The inflation rate for the year as of last month was 3.5%, which is still within the government's target range of 2% to 4%. Additionally, it was within the 3.7% to 4.5% projected range provided by the Bangko Sentral ng Pilipinas (BSP).

Concerns over inflation and the peso, which fell for a second consecutive trading day to fresh 19-month lows, caused share values to decline. The benchmark Philippine Stock Exchange index finished the two-day rally short of what it had begun, falling 1.3 percent, or 84.32 points, to close at 6,386.42.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said that, “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.”

Source: GMA Integrated News

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