MORE expensive food items caused the country’s inflation rate to jump to a two-year high in August, according to the Philippine Statistics Authority (PSA).
On Tuesday, PSA said inflation surged 4.9 percent in August 2021. This is the highest since December 2018 when inflation was at 5.1 percent.
Inflation in July 2021 was at 4 percent while inflation averaged 2.4 percent in August 2020.
“The uptrend in the country’s inflation was mainly brought about by the higher annual increment in the index of the heavily-weighted food and non-alcoholic beverages at 6.5 percent during the month, from 4.9 percent in July 2021,” PSA said in a statement.
The PSA data showed inflation for food items grew 6.9 percent in August 2021, from 5.1 percent in July 2021. PSA said it was at 1.7 percent in August 2020.
In terms of specific food items, double-digit annual growth rates were noted in the indices of meat at 16.4 percent; fish, 12.4 percent; and vegetables, 15.7 percent.
PSA said inflation in the National Capital Region (NCR) rose to 3.7 percent in August 2021, from 3.2 percent in July 2021. In August 2020, inflation in the region was observed at 2.2 percent.
Outside NCR
Further, inflation in Areas Outside of NCR (AONCR) accelerated to 5.2 percent in August 2021, from 4.3 percent in the previous month. In August 2020, inflation in AONCR stood at 2.5 percent.
Meanwhile, inflation for the bottom 30 percent income households grew 5.2 percent in August 2021, from 4.4 percent in July 2021. It was at 2.7 percent in the same month of the previous year.
The August 2021 inflation brings the national average inflation rate for this particular group of consumers from January to August 2021 to 4.9 percent.
“Inflation at the national level during the month was primarily pushed up by the higher annual uptick of the heavily-weighted food and non-alcoholic beverages index at 5.6 percent in August 2021, from 4.1 percent in July 2021,” PSA said.
The poorest Filipinos living in NCR increased to 5.1 percent in August 2021 from 4.3 percent in July 2021. In August 2020, inflation in the region was observed at 3 percent.
The poorest residing in AONCR saw inflation increase to 5.2 percent in August 2021 from 4.4 percent in July 2021. In August 2020, inflation in AONCR was recorded at 2.7 percent.