MANILA – Inflation accelerated further in June to the fastest level in at least five years, the Philippine Statistics Authority announced Thursday.
PSA data showed inflation clocked in at 5.2 percent, the fastest in at least five years using 2012. as base year.
“It was primarily brought about by higher annual rate posted in the heavily-weighted food and non-alcoholic beverages index at 6.1 percent,” the PSA said.
The June inflation compares with 4.6 percent in May 2018, and 2.5 percent in June 2017.
This is also faster than the Bangko Sentral forecast of 4.3- to 5.1 percent, and 4.9-percent outlook of the Department of Finance (DOF).
The acceleration in June was due to faster increments in prices of alcoholic beverages and tobacco (20.8 percent); and housing, water, electricity, gas, and other fuels (4.6 percent).
Increases were also recorded in furnishing (3.0 percent), transport (7.1 percent), communication (0.4 percent), and education (4.0 percent).
Excluding selected food and energy items, core inflation accelerated by 4.3 percent in June 2018, compared with 3.6 percent in May 2018.
DBS Group Research in April said inflation is expected to ‘top out’ at 5 to 6 percent, as a result of the the government’s tax reform program. (GMA News)
