Electricity, fuel costs drive inflation upward in May | ABS-CBN
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Electricity, fuel costs drive inflation upward in May
Electricity, fuel costs drive inflation upward in May
Benise Balaoing,
ABS-CBN News
Published Jun 05, 2024 09:11 AM PHT
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Updated Jun 05, 2024 01:01 PM PHT
MANILA -- Inflation picked up for the fourth straight month in May due to rising electricity and fuel costs, the Philippine Statistics Authority (PSA) said Wednesday.
MANILA -- Inflation picked up for the fourth straight month in May due to rising electricity and fuel costs, the Philippine Statistics Authority (PSA) said Wednesday.
The consumer price index reached 3.9 percent, higher than the 3.8 percent recorded in April.
The consumer price index reached 3.9 percent, higher than the 3.8 percent recorded in April.
But this is still within the Bangko Sentral ng Pilipinas' (BSP) 3.7 to 4.5 percent forecast, and within the government's target range of 2 to 4 percent.
But this is still within the Bangko Sentral ng Pilipinas' (BSP) 3.7 to 4.5 percent forecast, and within the government's target range of 2 to 4 percent.
In a press briefing, the PSA said inflation for housing water, electricity, gas, and other fuels reached 0.9 percent in May, faster than the 0.4 percent seen in April.
In a press briefing, the PSA said inflation for housing water, electricity, gas, and other fuels reached 0.9 percent in May, faster than the 0.4 percent seen in April.
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National Statistician Dennis Mapa said that for consuming 120 kWh of electricity, power costs in May averaged P1444.60 in May, higher than the P1,384.35 average in April.
National Statistician Dennis Mapa said that for consuming 120 kWh of electricity, power costs in May averaged P1444.60 in May, higher than the P1,384.35 average in April.
The average price of an 11 kg tank of liquefied petroleum gas (LPG) or cooking gas also climbed to P1,404.60 in May from P1,113.18 in April.
The average price of an 11 kg tank of liquefied petroleum gas (LPG) or cooking gas also climbed to P1,404.60 in May from P1,113.18 in April.
Transport inflation also quickened to 3.5 percent from 2.6 percent the month before.
Transport inflation also quickened to 3.5 percent from 2.6 percent the month before.
The state statistics bureau, however, noted that food inflation was slower at 6.1 in May, versus 6.3 percent in April.
The state statistics bureau, however, noted that food inflation was slower at 6.1 in May, versus 6.3 percent in April.
Rice inflation also slightly eased from 23.9 percent in April to 23 percent in May.
Rice inflation also slightly eased from 23.9 percent in April to 23 percent in May.
Mapa said the average price of regular milled rice reached P51.03 in May, down from the P51.25 in April.
Mapa said the average price of regular milled rice reached P51.03 in May, down from the P51.25 in April.
The cost of well-milled rice went down to P56.06 from P56.42 the month before. The price of special rice decreased to P64.41 from P64.68 a month prior.
The cost of well-milled rice went down to P56.06 from P56.42 the month before. The price of special rice decreased to P64.41 from P64.68 a month prior.
Core inflation, which strips out food and fuel items whose prices can swing wildly, meanwhile slowed to 3.1 percent in May, from 3.2 percent a month earlier.
Core inflation, which strips out food and fuel items whose prices can swing wildly, meanwhile slowed to 3.1 percent in May, from 3.2 percent a month earlier.
Mapa said the placing of the Luzon and Visayas grids on red and yellow alerts could have driven power costs higher.
Mapa said the placing of the Luzon and Visayas grids on red and yellow alerts could have driven power costs higher.
“That’s possible, because of course if you have higher demand, compared to supply, that would trigger some adjustments in the prices upward,” he said.
“That’s possible, because of course if you have higher demand, compared to supply, that would trigger some adjustments in the prices upward,” he said.
The statistician noted, however, that rice prices could fall by P6-7 per kilo because of tariff reductions.
The statistician noted, however, that rice prices could fall by P6-7 per kilo because of tariff reductions.
The National Economic and Development Authority (NEDA) Board has agreed to reduce rice tariffs to 15 percent from 35 percent until 2028, as part of government efforts to make the staple grain more affordable.
The National Economic and Development Authority (NEDA) Board has agreed to reduce rice tariffs to 15 percent from 35 percent until 2028, as part of government efforts to make the staple grain more affordable.
“Yung tariff reduction nation, kasi malaki (The tariff reduction is huge). Yung aming estimate, very quick estimate, on the impact ng price per kilo, all things being the same, from the reduction of the tariff is about P6-7. All things being the same yun ah, very quick computation,” Mapa explained.
“Yung tariff reduction nation, kasi malaki (The tariff reduction is huge). Yung aming estimate, very quick estimate, on the impact ng price per kilo, all things being the same, from the reduction of the tariff is about P6-7. All things being the same yun ah, very quick computation,” Mapa explained.
“And that would have impact, a large impact on the inflation for rice and the overall inflation.”
“And that would have impact, a large impact on the inflation for rice and the overall inflation.”
The NEDA said it would continue to work to curb food and non-food inflation.
The NEDA said it would continue to work to curb food and non-food inflation.
“We will continue to find supply-side solutions to help manage the price increases of other commodities and keep inflation within the target range in the months to come,” Socioeconomic Planning Secretary Arsenio Balisacan said in a statement.
“We will continue to find supply-side solutions to help manage the price increases of other commodities and keep inflation within the target range in the months to come,” Socioeconomic Planning Secretary Arsenio Balisacan said in a statement.
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