MANILA, Philippines – Government agencies and various investment houses expected inflation, or the movement of prices of goods, to jump even higher in August.
The Department of Finance (DOF) announced on Monday, September 3, that they projected inflation to settle at 5.9%. (READ: Who's to blame for soaring inflation? 'All of them' in gov't, says economist)
Alcoholic beverages and tobacco (21.5%) and electricity, gas and other fuels (11.5%) are estimated to jump the highest among major commodities.
The DOF also projected food and non-alcoholic beverages to jump by 7%, while education was seen to have a slowdown of -3.9%.
The Bangko Sentral ng Pilipinas (BSP) also estimated August inflation to hit 5.9%, with a range of 5.5% to 6.2%.
“Higher price of rice and key food items due to weather disturbances and supply disruptions, increase in gasoline and LPG prices, and slight upward adjustment in electricity rates in Meralco-serviced areas contributed to upward price pressures in August,” the BSP said.
Meanwhile, some analysts saw higher figures. (READ: Government should worry about sky-high inflation – economists)
Ateneo de Manila University economics professor Alvin Ang’s projection was also 6% due to the delayed importation of rice, weather disturbances, and adjustments in power rates.
The government is aiming to keep inflation within 2% to 4% from 2018 to 2022.
Economic managers anticipate inflation to taper off in 2019.
The Philippine Statistics Authority (PSA) will release official figures on Wednesday, September 5. – Rappler.com