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By Darwin G. Amojelar, Reporter
Prices of goods and services in
March rose at their fastest pace in 19 months owing to higher food
and fuel prices, the government reported Friday.
The National Statistics Office (NSO)
said inflation rate in March went up to 6.4 percent, higher than the
estimate of the Bangko Sentral ng Pilipinas of between 5.3 percent
and 5.9 percent.
It was considerably higher, more
than twice, the 2.6 percent inflation rate posted in March 2007. In
February, the inflation rate was 5.4 percent.
From January to March, inflation
rate rose 5.6 percent, higher than the Development Budget and
Coordinating Committee’s projection of 3.5 percent to 5 percent
this year.
The agency attributed the
increase in prices to the 8.2-percent hike in the annual rate of the
heavily weighted food, beverages and tobacco items, up from 6.8
percent. Higher annual rates in all the other commodity groups also
contributed to the uptrend.
Prices for clothing was up 3.6
percent; housing and repairs, 3.1 percent; fuel, light and water,
6.2 percent; services, 6.4 percent; and miscellaneous items, 2.4
percent.
The NSO said that excluding
select food and energy items, core inflation went up to 4.8 percent
in March, up from only 4 percent in February.
“Upward movements in the prices
of the heavily weighted food items, such as rice, flour and flour
products, pork, cooking oil, selected spices and seasonings, milk
and milk products resulted in a 0.9-percent growth in the overall
month-on-month inflation rate. Higher electricity rates and the
series of price hikes in gasoline and diesel also contributed to the
increasing trend,” the statistics office said.
Acting Socioeconomic Planning
Secretary Augusto Santos said the upward pressure on inflation is
likely to continue in the next few months as local rice prices begin
to reflect global supply conditions.
“At the same time, petitions
for transport fare increase and minimum wage hike have also been
submitted to concerned agencies,” he said.
Victor Abola, an economist at the
University of Asia and the Pacific, said the sharp rise in food
prices that appears to have continued in early April, has alarmed
some analysts. They now ask if the 3 percent to 5 percent inflation
target of the government is still attainable.
“To be sure, it is likely that
year-on-year inflation rates may accelerate further to 6.8 percent
in April and May, but [they may] start slowing down in June. Prices
for food alone in the country grew to 8.4 percent in March from 7
percent in February,” Abola said.
On an annual basis, price
increases were higher in rice at 10.9 percent in March from 7.7
percent in February; corn, 8.4 percent from 5.2 percent; cereal
preparations, 11.3 percent from 9 percent; dairy products, 12.4
percent from 11.8 percent; fish, 8.5 percent from 7.9 percent; meat,
7 percent from 4.4 percent; and miscellaneous foods, 4.9 percent
from 4.1 percent.
Prices of eggs and fruits and
vegetables, on the other hand, were slower at 8.1 percent and 10.2
percent from 8.3 percent and 11.1 percent, respectively.
Retail prices of rice at the
national level jumped by 3.2 percent in March from 0.5 percent in
February. In Metro Manila, prices of rice rose 7.9 percent, up from
0.2 percent. Outside Metro Manila, prices rose 2.6 percent, up from
0.6 percent.
Among the regions, Bicol posted
the highest monthly growth rate at 8.7 percent, followed by Davao at
3.5 percent.
“The tight supply of pork was
mainly responsible for its increased price during the month. Higher
prices of beef and chicken were also noticed,” NSO said.
Inflation rate in Metro Manila
rose 1.3 percentage points to 5.4 percent in March, while prices
outside Metro Manila went up 6.8 percent.
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