Inflation rises to 2.5% in December 2019

MANILA -- Increases in prices of food and non-alcoholic beverages and transport further accelerated the country’s headline inflation to 2.5 percent in December, bringing the full-year figure to 2.5 percent.

Last year’s inflation settled within the government’s target of 2 to 4 percent for 2019.

In a press briefing Tuesday, Philippine Statistics Authority’s (PSA) Deputy National Statistician Rosalinda Bautista attributed the upward trend in December 2019 mainly to increment recorded in the heavily-weighted food and non-alcoholic beverages index, particularly fish, vegetables, and meat.

Bautista said the supply of vegetables was affected by the onslaught of Typhoons Tisoy and Ursula, while rice prices have been decreasing for eight months until last month.

“It’s because of the effect of the weight of food in the (consumer price index) basket. If we look at the weight of food, it is 38.34 percent, whereas transport is 8.06 percent. If you look

at specifically petroleum, its weight is 2.02 percent,” she said.

The increment in transport index and alcoholic beverages and tobacco also pushed up the overall inflation in December, she added.

Bautista said a slower annual mark-up was noted in health index, while other five commodity groups retained their rates -- clothing and footwear, communication, recreation and culture, education, and restaurant and miscellaneous goods and services.

Inflation rose further in the National Capital Region and areas outside the National Capital Region last month, she said.

Bautista said Bicol Region recorded the highest inflation among the regions, attributing the higher food prices to the impact of Typhoon Tisoy. (PNA)

A delegation from the Department of Finance and the Bureau of Internal Revenue led by Finance Undersecretary Antonette Tionko met with the General Department of Taxation of the Ministry of Economy and Finance of the Kingdom of Cambodia, represented by Deputy Director General Bun Neary, to discuss and agree on the major provisions in the proposed double taxation agreement between the Philippines and Cambodia. After the meeting, the two parties signed the record of the developments they have agreed upon. The two countries may soon reach an agreement, following the substantial progress made during this second round of negotiations held on 11 to 13 December 2019 in Siem Reap, Cambodia. The first round of negotiations was held in Manila last June 2018.