Higher food prices push inflation to 5.4%, a 42-month record high inflationrate
mainly by higher prices of food, non-alcoholic beverages and transport, the Philippine Statistics Authority said Tuesday.
“The latest assessment also indicates that domestic economic activity has gained stronger traction with the easing of mobility restrictions. However, heightened geopolitical tensions, a resurgence in COVID-19 infections in some countries along with faster-than-expected monetary policy normalization in advanced economies have clouded the outlook for global economic growth,” Diokno said.He said the balance of risks to the inflation outlook leaned toward the upside for both 2022 and 2023.
We have seen how a single crisis can set us back, so the Duterte administration has pursued both short- and long term interventions to increase the resilience of our domestic economy against external shocks,” Chua said. Household inflation for electricity, gas, and other fuels also remained high even with a slight deceleration at 18.8 percent from 19.9 percent.
To help maintain or lower electricity prices, EO No. 171 also temporarily eliminates the 7 percent MFN import tariff rate on coal as it is an important raw material in the generation of electricity. He said some regional wage boards already approved minimum wage rate hikes effective as early as June 2022, already leading to some price increases in some products and services to reflect the pass-on effects during the month.
Annual hikes were also higher in the indices of alcoholic beverages and tobacco, 6.5 percent; clothing and footwear, 1.2 percent; health, 1.9 percent; recreation, sport and culture, 1.0 percent; restaurants and accommodation services, 3.3 percent; and personal care, and miscellaneous goods and services, 2.2 percent.
On May 19, 2022, the Monetary Board hiked by 25 basis points the record-low 2 percent policy rate to 2.25 percent, to rein in the inflation rate.