Inflation rate likely eased further to 3.2 percent in December from 3.3 percent in November, on stable food prices and lower power cost, according to Finance Undersecretary Gil Beltran.
Beltan, citing estimates from the Philippine Statistics Authority, said price increases of food and non-alcoholic beverages likely remained unchanged at 3.2 percent in December. Price increases of rice were also seen unchanged at 1 percent.
Communication, education, restaurant and miscellaneous services also likely stayed at their levels, he said.
Beltran said the low inflation was an indication that the country’s macroeconomic fundamentals remained strong.
“Solid fundamentals backed by Train 1 [first package of Tax Reform for Acceleration and Inclusion Act] implementation, rice sector reform and the ‘Build, Build, Build’ policy will push the country’s growth to 7 percent to 8 percent this year and sustain manageable inflation,” Beltran, who is also the DoF’s chief economist, said.
President Rodrigo Duterte signed the Train Act into law on Dec. 19. The law, which takes effect this month, exempts compensation earners and self-employed individuals with an annual taxable income of P250,000 and below.
Beltran said the commodity groups that likely recorded slower price increases in December were housing, utilities and fuels, at 3.7 percent from 4.2 percent a month ago; electricity, gas, and other fuels, 8.1 percent from 9.7 percent; transport, 2.8 percent from 4.4 percent; recreation and culture, 1.5 percent from 1.6 percent.
Data showed that Meralco rate for households consuming 200 kilowatts in December declined to P9.25 per kilowatt-hour from P9.63 per kWh in November.
