After inflation slowed down for four months, the Philippine Statistics Authority (PSA) reported that it has accelerated at 2.5 percent for the month of June. This has considerably increased from the month of May’s 2.1 percent but is lower compared to that of June 2019.
The PSA said one of the main reasons is the increased transport index, including fares in tricycles which ballooned to 26 percent.
However, food inflation slowed down at 2.7 percent due to the stable supply of agricultural commodities and improved food delivery. The National Economic and Development Authority (NEDA) cautioned that the government must ensure the prices of primary commodities will not increase to encourage public spending and aid in the country’s economic recovery.
“You have movements of our citizens to in a way caused the increase and the limited transportation during ECQ to GCQ,” PSA USec. Claire Dennis Mapa explained.
Malacañang observed the figures are still low.
“Inaasahan po natin na kahit paano talaga tumaas kasi nanggaling tayo sa complete lockdown. Siyempre po, habang nagbukas ang ekonomiya, mas tataas po ang supply, dahilan kung bakit tumataas din ang inflation rate. At ‘yan naman po ay supply at demand (We are expecting it to rise somehow since we came from a complete lockdown. As we open up the economy, supply is higher, one reason for the increase in inflation rate. And that is supply and demand),” Presidential Spokesperson Harry Roque said.
– Report from Naomi Tiburcio
