Inflation quickens; Palace not alarmed

THE country's headline inflation slightly accelerated to 3.2 percent in May 2019 from three percent in April, breaking the six consecutive months of slowdown, the Philippine Statistics Authority (PSA) reported.

This should not worry the public, Malacañang said on Thursday, June 6.

The uptick was driven by the 3.4-percent increase in food and nonalcoholic beverages, and the 3.3-percent increase in water, electricity, gas and other fuels, National Statistician Claire Dennis Mapa said Wednesday, June 5.

Presidential Spokesperson Salvador Panelo said the inflation rate is still within the Bangko Sentral ng Pilipinas' target band of 2.8 to 3.6 percent for May.

"We assure our countrymen that the minimal increase in the inflation rate is a circumstance that does not toll the alarm bells," the Palace official said in a statement.

"The rise is within the 2.8 percent to 3.6 percent range estimated by the Bangko Sentral ng Pilipinas (BSP) hence there is no cause for alarm," he added.

Panelo explained that high spending in food and alcoholic beverages during the campaign period, the rise of international prices of fuel, and negative effects of El Niño phenomenon spiked the inflation rate.

"Both factors are expected however to taper down," he said.

"When the full impact of rice liberalization is felt, with rice prices falling down further, there will be a downtrend in the inflation rate. Current rice and corn price index already showed a decline of 0.7 percent and 2.8 percent, respectively," he added.