MANILA – The Malacañang has downplayed the risk of inflation after consumer prices reach the highest level in five years in June.
The Philippine Statistics Authority reported inflation came in at 5.2 percent last month, breaching the 4.3- to 5.1-percent the central bank had predicted, and the 4.9-percent outlook of the Department of Finance.
“There’s money going around, that’s why you are bound to have inflation. There’s money from the free tuition. There’s money from taxes that’s paid by those who earning P250,000. There’s money because of economic activity spurred by the ‘Build, Build, Build’ [program],” presidential spokesperson Harry Roque told reporters.
“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.”
The Bangko Sentral ng Pilipinas (BSP), however, called the higher-than-expected inflation rate a “setback” and that it will review its forecasts.
The BSP expects inflation to settle at 4.5 percent this year. (GMA News)
