In­fla­tion climbs to 2.6% in De­cem­ber

Sun.Star Pampanga - - STORIES! -

IN­FLA­TION

slightly rose to 2.6 per­cent in De­cem­ber, bring­ing full-year 2016 in­fla­tion to 1.8 per­cent, the Na­tional Eco­nomic and De­vel­op­ment Au­thor­ity (Neda) said Thurs­day.

“The uptick in in­fla­tion last month was caused by price in­creases partly due to the hol­i­day sea­son and sup­ply con­straints on some food items,” said So­cioe­co­nomic Plan­ning Sec­re­tary Ernesto Per­nia.

The full-year 2016 in­fla­tion of 1.8 per­cent is be­low the govern­ment’s tar­get range of 2.0 to 4.0 per­cent for the year, but higher than the 1.4 per­cent of 2015.

Food in­fla­tion for De­cem­ber in­creased to 3.7 per­cent from 3.5 per­cent in the pre­vi­ous month, and higher than the 1.8 per­cent in the same pe­riod in 2015. Faster in­creases in the prices of bread and ce­re­als (1.6 per­cent from 1.5 per­cent), fish (5.5 per­cent from 4.7 per­cent), and meat (1.8 per­cent from 1.5 per­cent) were recorded.

Non-food in­fla­tion for De­cem­ber was pushed by trans­port (1.9 per­cent from 0.5 per­cent in Novem­ber) and re­cre­ation and cul­ture (1.7 per­cent from 1.6 per­cent in Novem­ber). The faster spike in trans­port costs can be traced to the con­sid­er­able in­creases in do­mes­tic petrol prices such as un­leaded

gaso­line (10.0 per­cent from 3.98 per­cent) and diesel (16.04 per­cent from 7.41 per­cent).

“The higher prices in trans­port com­mod­ity re­flected the hike in in­ter­na­tional oil prices caused by oil-pro­duc­ing coun­tries’de­ci­sion to cut oil pro­duc­tion by al­most 1.8 mil­lion bar­rels per day,” said Per ni a.

Core in­fla­tion, which ex­cludes se­lected volatile food and en­ergy prices, also inched up to 2.5 per­cent in De­cem­ber 2015 from 2.4 per­cent in the pre­vi­ous month. The 2016 full year core in­fla­tion av­er­aged at 1.9 per­cent, still lower than the 2.0 per­cent recorded in 2015.

For 2017 and 2018, the govern­ment ex­pects in­fla­tion to be within the tar­get range of 2.0 to 4.0 per­cent. This al­ready con­sid­ers the sce­nario of higher oil prices, pend­ing pe­ti­tions for ad­just­ments in elec­tric­ity rates, but es­pe­cially, strong do­mes­tic eco­nomic ac­tiv­ity, Per­nia said. (SDR/ Sun­nex)

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