The rate of increase in consumer prices likely quickened further last month owing to a weaker peso that pushed up food, power and fuel prices, the Department of Finance (DOF) said today.
Based on the latest DOF Economic Bulletin dated April 3, the country’s inflation may have settled at 3.6 percent in March this year, faster than the 3.3 percent in the previous month and 1.1 percent in the same period last year.
The DOF’s inflation forecast is within the Bangko Sentral ng Pilipinas’ (BSP) estimate of around 3.0 percent to 3.8 percent for March.
DOF Undersecretary and Chief Economist Gil Beltran traced the acceleration of inflation to “base effects,” saying global petroleum prices have started normalizing from low levels set last year.
“The BSP has lowered its inflation forecast for the whole year 2017 (to 3.4 percent from 3.5 percent in February) due to lower actual inflation than earlier forecast,” Beltran said in his report to Finance Secretary Carlos Dominguez III.
The Philippine Statistics Authority is set to release the official March inflation report tomorrow (April 5).
Last month, the general price increase for food and non-alcoholic drinks likely rose to 4.5 percent from 4.1 percent, while alcoholic drinks and tobacco jumped 6.5 percent from 6.0 percent.
Prices for housing, utilities and fuels are also expected to increase by 4.1 percent from 2.9 percent in the previous month.
Clothing and footwear inflation is seen to reach 2.9 percent, up from 2.8 percent in February, while health may have settled at 2.8 percent from 2.6 percent.
Meanwhile, prices for transport likely dropped to 1.9 percent from 2.8 percent, and restaurants & miscellaneous services to 1.8 percent from 2.1 percent.
On the other hand, inflation of furnishings, households equipment (2.3 percent), recreation and culture (1.8 percent), education (1.8 percent) and communication (0.2 percent) are expected to remain steady.
Last month, Manila Electric Co. (Meralco)’s rate per kilowatt hour (kWh) for an average of 300 kilowatts-per-month consumption slightly increased to P10 from P9.3 in February and P8.9 percent a year before.
Meralco’s generation rate per kWh also increased to P4.9 during the month from P4.3 in the previous month and P4 last year.
Meanwhile, the average price of diesel in Metro Manila among the “big three” oil companies slightly dropped to P31.1 per liter from P31.3 in the previous month, but higher than P22.5 in the same month in 2016.
Average price of gasoline during the month also decreased to P46 per liter from P47.7 in February, but well above compared to P37.6 in the same month last year
