|
HIGH
energy prices drove up the country’s year-on-year
inflation rate to 2.6 percent in July from 2.3 percent
in June, according to the figures released by the
National Statistics Office (NSO) Tuesday.
Year-to-date inflation, however, remained at 2.6
percent, while core inflation, which excludes certain
food items, was up at 3 percent in July from 2.5 percent
in June. Inflation in July 2006 was pegged at 6.4
percent.
“Compared with June, the general level of consumer
prices increased to 0.8 percent in July from 0.6 percent
in June, as selected items such as eggs, meat, milk,
fruits and vegetables were priced higher during the
month,” the NSO said.
University of Asia and the Pacific (UA&P) economist
Victor Abola said though the inflation rate this month
is lower than the same period last year, it would be
better to compare the inflation rate in July to June
this year.
Abola
said energy costs were the main reason for higher
inflation in July. The cost of fuel, light and water
accounted for as much as 45 percent, he added.
“The
reality is that inflation is going up again,” Abola said
in an interview.
However,
he said, the higher inflation for July is still within
the target of the Bangko Sentral ng Pilipinas (BSP);
even the year-to-date inflation falls within the
4-percent to 5-percent full-year inflation target of the
BSP.
In fact,
Abola projects that inflation would only be a little
over 3 percent by year-end.
Meanwhile, former National Economic and Development
Authority director general Dr. Cayetano Paderanga siad
the inflation rate was still within BSP expectations.
Paderanga added that only an unusual spike in oil prices
and some negative changes in exchange rates could push
up inflation rate to even higher levels.
“[The
increase in the inflation rate this month] should not be
a cause of alarm. This is as long as [the inflation
rate] will not make drastic increases. For the short
term, inflation will remain relatively low,” Paderanga
said.
Private
economist Bienvenido Oplas Jr. said to date, the country
is still benefiting from the appreciation of the peso
against the dollar. The higher value of the peso is
largely due to the appreciation of other currencies
vis-à-vis the dollar.
The NSO
attributed higher inflation to the rising prices of
fuel, light and water, food, beverages, and tobacco as
well as cost of services. Only housing and repairs
stayed at their June rate; and clothing and
miscellaneous items registered lower inflation rates. |
