The country’s inflation accelerated to 6.1% in June, up from the previous 5.4% in May, the Philippine Statistics Authority (PSA) reported Tuesday, July 5.
According to PSA, the inflation was due to the constant increase in prices of food and transportation.
Based on their records, the food sector had an inflation of 6%, while transportation increased by a whopping 17.1%.
According to chief economist Mike Ricafort, the inflation will have a “huge effect” on the spending of the consumers.
“Definitely, mas ano to, dadagdag ‘yung bayarin ng tao, mababawasan ‘yung kita nila they need to spend more dahil sa mas mataas na presyo.”
He added that most of the inflation is caused by “external beyond the country’s control” which includes the prices of crude oil in the country.
Moreover, the Bangko Sentral ng Pilipinas (BSP) said that the “increase in oil prices and the weakness of the peso against the dollar” are the main reasons for inflation acceleration.
Meanwhile, PSA National Statistician, Usec. Dennis Mapa said that according to their monitoring, there will be another increase particularly in food prices in the market.
“Based on our monitoring, there are expectations that these prices, particularly food prices will continue to move upward,” Mapa said.
The BSP has yet to announce their new policy rates on how to help the prices decrease. –Report from Naomi Tiburcio/KC – gb
