Inflation for Philippine poor at five year high

THE rate of increase in prices of basic commodities among poor families remained at an almost five-year high of 9.5 per cent year-on-year in October even as food inflation slightly eased that month, the government reported on Friday.

T he Ph i l ippi ne St at i st ic s Aut horit y’s (PSA) Consumer Price Index for Bottom 30-PerC e nt In c ome Hou s e h ol d s repor t for October showed t hat t he yea r-on-yea r r ate matched September’s similar 9.5 per cent, the highest since 2014, based on 2,000 prices.

Price increases

The PSA said prices of ser vices, clot hing a nd miscel laneous goods rose 3.5 per cent, 2.9 per cent and 2.2 per cent, respectively, a ll faster t han a month ago.

However, price increases in food, beverages and tobacco slowed to 10.7 per cent i n October against 10.8 per cent in September, while those for f uel, l ig ht a nd water a l so eased to 9.8 per cent from 10 per cent, t he PSA said.

Also, t he food index saw a sl ig ht ly slower 9.8 per cent increase from 9.9 per cent in September.

“Relat ive to t hei r a nnua l rates in the prev ious month, a nnua l add-ons in October were slower in t he indices of corn at 5.6 per cent; fruits and vegetables, 14.2 per cent, and meat, 7.1 per cent,” t he PSA explained.

At t he end of t he f i rst 10 months, inf lation for t he bottom 30-per-cent households averaged seven per cent.

Nationwide headline inf lation was a lower 6.7 per cent y e a r- on-y e a r i n Oc t ober, although the rate was an over nine-year high based on 2012 prices.

Poor families outside Metro Manila experienced a similar 9.5 per cent hi ke in average prices last October, similar to t he rate in September.

Mea nwhi le, Poor households in Metro Manila experienced a slower average price increase of 6.9 per cent t hat month from September’s 8.1 per cent.

This has been t he reason why labou r g roups insisted t hat t he slowdow n in inf lation should not be a cause for celebration for t he administ rat ion a s t he poor people c ou ld ha rd l y a f ford ba sic commodities.

Tr a n s p or t g r ou p s a l s o fou nd l it t le rea son to rela x a mid t he recent rol lback of fa res for jeepneys – jeeps used a s publ ic t ra nspor t at ion – and President Duterte’s decision to push through with the second round of increase in t he e x c i s e on f ue l ne x t month.

Economic managers see the decline as optimistic, but t he f ig ures don’t add up for jeepney drivers still str uggling to make ends meet, said transp or t g r oup P i s t on c h a i r George San Mateo.

“The [lower inf lation rate] is no use to us,” Sa n Mateo said. “With the looming 2.45 p e s o [ $ 0. 0 4 6 ] a dd i t i on a l excise on diesel starting Januar y next year, drivers would suf fer an additiona l loss of 80 pesos a day.”

San Mateo was referring to the fuel ta x hike approved by Duterte last week.