ECONOMY | Staff Reporter, Philippines

Philippine inflation hits 5-year highs at 4.6% in May

The passage of the Tax Reform for Accelaration and Inclusion (TRAIN) law caused price surges in some commodities.

The Philippine annual headline inflation rate hit 4.6% in May 2018 which is up 55.17% from May 2017’s 2.9% inflation rate. Inflation continued to rise from 4.5% in April 2018, the Philippine Statistics Authority (PSA) announced.

According to the agency, annual increases in commodity groups were led by alcoholic beverages and tobacco (20.5%), followed by transport (6.2%), restaurant and miscellaneous goods and services (3.7%), and furnishing, household equipment and routine maintenance of the house (2.9%).

In January, the passage of the Tax Reform for Accelaration and Inclusion (TRAIN) law caused price surges in some commodities. 

The higher prices in transport was pushed by rising world crude oil prices, a joint statement from the National Economic Development Authority (NEDA), Department of Budget and Management (DBM), and the Department of Finance (DOF) noted. The rise in international oil prices above 60 dollars per barrel contributed to the 0.5% points to the overall inflation rate in May 2018.

“The DTI is continuously monitoring prices of commodities, including food products, ensuring that retailers are in line with agreed suggested retail prices (SRPs),” the announcement said.

“We also expect large tranches of rice imports to arrive starting this month, making food cheaper for the Filipino family,” they added.

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