Inflation quickens to 3.4 pct in February | ABS-CBN

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Inflation quickens to 3.4 pct in February

Inflation quickens to 3.4 pct in February

Arthur Fuentes,

Benise Balaoing,

ABS-CBN News

 | 

Updated Mar 05, 2024 01:58 PM PHT

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MANILA (UPDATE 3) - Philippine inflation quickened in February, the state statistics bureau said on Tuesday.

Inflation hit 3.4 percent last month, which was faster than the 2.8 percent clip seen in January.

This was within the 2.8 percent to 3.6 percent forecast of the Bangko Sentral ng Pilipinas.

National Statistician, Undersecretary Dennis Mapa said inflation quickened primarily because of higher increases in food and non-alcoholic beverages at 4.6 percent in February from 3.5 percent in the previous month. 

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"Food inflation at the national level rose to 4.8 percent in February 2024 from 3.3 percent in January 2024. In February 2023, food inflation was higher at 11.1 percent," the PSA said.

Mapa said rice inflation reached 23.7 percent in February, higher than the 22.6 percent noted in January.

In the National Capital Region, rice inflation further climbed to 15.5 percent in February from 14.6 percent in January.

Nationwide, the price of regular-milled rice in February was at P50.44 per kilo, up from the P39.66 per kilo in February 2023.

Well-milled rice was at P55.93 per kilo, higher than the P43.99 per kilo in the same month in 2023, while special rice was at P64.42 per kilo against P53.89 per kilo in February 2023.

Meat prices also increased 0.5 percent in February in the NCR from -2 percent in January. Fish, fruits, bread and milk meanwhile saw slower price increases last month in the NCR.

On the national level, transport costs also rose 1.2 percent in February from an annual decline of 0.3 percent in January.

Increases in housing, water, electricity, gas and other fuel costs also quickened to 0.9 percent during the month from 0.7 percent in January, which contributed to faster inflation.

A higher inflation rate was noted in alcoholic beverages and tobacco at 8.6 percent in February 2024 from 8.4 percent in the previous month.

For the poorest Filipinos who make up the bottom 30 percent of the population, inflation was even higher at 3.9 percent, the PSA noted.

Meanwhile, core inflation, which strips out volatile food and energy items, slowed down to 3.6 percent in February 2024 from 3.8 percent in the previous month, the PSA said.

In contrast, core inflation in February 2023, was higher at 7.8 percent.

The National Economic and Development Authority (NEDA) said the government will monitor food supply and prices to make sure Filipinos have access to affordable food.

NEDA Secretary Arsenio Balisacan said the potential impact of El Niño on food prices is a "significant concern" for the nation.

"Rising transportation costs, electricity rates, and volatile oil markets are putting pressure on household finances," he added.

Balisacan noted that rice prices globally are starting to decrease, and local supply may increase once harvest begins this month through April.

Albay Governor Joey Salceda, for his part, said the government must provide post-harvest support for rice farmers.

"Post-harvest losses amount to as much as 12-15 percent, and Secretary (Francisco) Tiu-Laurel has been hyperfocused on dealing with this issue. We must also ensure that logistics issues at the port, in farm-to-market roads, and other potential supply bottlenecks are eased," he said.

High inflation and high interest rates have been blamed for the Philippines' missing its growth target of at least 6 percent last year.

The Bangko Sentral ng Pilipinas said higher transport and electricity costs, increased electricity rates, and high prices of oil and food may keep inflation high.

But it noted that government measures to mitigate the impact of El Niño may help keep costs down.

The BSP said the Monetary Board will keep the BSP’s monetary policy settings unchanged in the near term amid the improvement in inflation conditions.

The central bank hopes to keep inflation within the target 2 to 4 percent range.

Analysts have said that the BSP will not cut rates until the US Federal Reserve cuts rates.



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