Malacañang Palace said the minimal increase in the country’s inflation rate is just temporary.
“We assure our countrymen that the minimal increase in the inflation rate is a circumstance that does not toll the alarm bells,” said Presidential Spokesperson Salvador Panelo in a statement.
Panelo echoed the economic managers’ attribution of the slight price increase in agricultural food products like vegetables, fish and fruits, as well as housing, water, and utilities – to the hike in international oil prices and the El Niño.
“High spending in food and alcoholic beverages during the preceding campaign period coupled with the rise of international prices of fuel which is beyond our control, and aggravated by the El Niño phenomenon in the peak summer month of May, resulting in food price inflation of fish and vegetable, spiked the inflation rate,” he said.
“Both factors are expected however to taper down,” he added.
Panelo said lower rice prices can be expected once the rice tariffication law has made its impact.
“With rice prices falling down further, there will be a downtrend in the inflation rate. Current rice and corn price index already showed a decline of 0.7 percent and 2.8 percent, respectively,” he said.
The Philippines posted a 3.2% inflation rate last month, marginally higher than the 3% in April.
The country’s monetary officials called the marginal rise in the country’s inflation rate as “temporary” and does not indicate a turn-around from its downward trajectory in the last six months. (PNA)