The 5.2-percent inflation rate recorded in June was higher than usual but was no cause for alarm, the Palace said Thursday.
Presidential Spokesman Harry Roque assured the public that they should not worry about the increase reported by the Philippine Statistics Authority, saying inflation was higher because there was more money going around.
“There’s money from the free tuition. There’s money from taxes that [are] paid by those who [are] earning P250,000 [a year]. There’s money because of economic activity spurred by the ‘Build, Build, Build.’ But it is not something to worry about. It’s within historical amounts. It’s higher than usual but it’s not something that we should be alarmed [about],” Roque said.
The PSA said the inflation which reached its highest level in five years, was primarily brought about by higher prices for food and non-alcoholic beverages.
Abrupt price increases were also seen in alcoholic beverages and tobacco (20.8 percent), housing, water, electricity, gas, and other fuels (4.6 percent), furnishing, household equipment and routine maintenance of the house 3 percent, transport 7.1 percent, communication 0.4 percent, and education 4 percent.
Annual increases in rice (4.7 percent), corn (14.1 percent), other cereals, flour, cereal preparation, bread, pasta and other bakery products (2.4 percent), meat (5 percent), vegetables (8.6 percent), sugar, jam, honey, chocolate and confectionery (3.9 percent), and other food products (3.1 percent) were also observed.
Akbayan Party-list Rep. Tom Villarin said despite government’s move to arrest inflation by increasing interest rates twice in succession, inflation rose to its highest level in five years.
“Rising prices of goods and services impact on the poor most and will affect their daily consumption of food and basic needs,” Villarin said.
“It will likely increase hunger and move more people down the poverty threshold. Coupled with a weakening peso, investor confidence will go down and with less investments, there will be [fewer] jobs,” he added. “With no jobs and costly living, this will drive people to crime.”
With inflation reaching the 5-percent mark in June, Senator Panfilo Lacson urged the government to review its projections amid remarks by Budget Secretary Benjamin Diokno that the problem was not bad.
Speaking during the regular “Kapihan sa Senado,” Lacson noted that from 2.4 to 4, the country’s inflation rate is now 5.2. In 2016, Lacson said the peso-dollar was at 47.3, but now, it’s 53.
“If you consuder the exchange rate right away, what we have been paying has already increased. We haven’t done anything but the debt we are to pay offshore already increases,” he said.
He added that many of the raw materials used by manufacturers are imported.
Senator Paolo Benigno Aquino IV said he hoped the President would announce the suspension of the Tax Reform for Acceleration and Inclusion Law in his State of the Nation Address.
He said there was no justice in imposing an excise tax on fuel while fuel prices continue to go up.
“The public has alrdeady been drowning in the high cost of goods,” he said.
Lacson also agreed with the stance of Aquino about the negative impact of TRAIN on price hike.
“It has an effect, The first effect is on the excise tax on fuel. Everything will be hit and there was inflation,” said Lacson.
Asked if excise tax should be stopped, Lacson cited the need to review TRAIN, which he described as the biggest culprit.
On Tuesday, oil companies raised their pump prices by P0.65 per liter for gasoline, P0.55 for diesel and P0.70 for kerosene. Starting this month, the electricity bills of Manila Electric Co. consumers will reflect a higher generation charge due to tight power supply and the further weakening of the peso.
