The gradual opening of the economy during the implementation of general community quarantine has slightly accelerated the country’s inflation rate for the month of July.
The Philippine Statistics Authority (PSA) reported on Wednesday that inflation has picked up to 2.7 percent in July 2020 from the 2.5 percent in June.
The Bangko Sentral ng Pilipinas (BSP) said the current number is within its forecast range of 2.2 to 3.0 percent.
“The latest inflation outturn is consistent with the BSP’s prevailing assessment that inflation is expected to remain benign over the policy horizon due largely to the potential adverse impact of COVID-19 on the domestic and global economic prospects,” it stated.
The acceleration is attributed to the increase in transport index, including fare prices. The average fare for tricycle was at Php 8.50 in 2019 which rose to Php 17.00 in 2020. Economists said there is an expected fare increase in the coming week amid the ongoing MECQ implementation which limits public transportation. – Report from Naomi Tiburcio
