The increase in commodity prices nationwide averaged 4.5 percent in April 2021, driven mainly by spikes in food prices and transportation, according to the Philippine Statistics Authority (PSA).
This was the same inflation rate posted in March 2021. However, this was still higher than the 2.2 percent inflation recorded in April 2020.
The central bank governor said the April inflation was still well within their expectations.
National Statistician Dennis S. Mapa said the primary contributors to this are the increase in food prices, transport, and restaurant and miscellaneous goods and services.
Mapa said the prices of food and non-alcoholic beverages increased 4.8 percent and accounted for 40.9 percent.
This was driven by meat inflation nationwide which averaged 22.1 percent; fish, 6 percent; and other cereals, flour, etc. at 1.8 percent.
In terms of transportation, these commodities increased 17.9 percent and accounted for 32.1 percent of inflation in April.
This was driven by higher tricycle prices at 48.4 percent; petroleum and fuels, 32 percent; and jeepney fares, 6.3 percent.
In terms of restaurant and miscellaneous goods and services, inflation reached 3.4 percent and accounted for 9.5 percent of inflation in April.
This was driven by meals which increased 3.7 percent; articles for personal hygiene such as alcohol at 2.9 percent; and barbershop services, 10.7 percent.
BSP: Within expectations
Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno told reporters that the latest inflation print is well within their expectations.
“The latest outturn is consistent with expectations that inflation would remain elevated this year, owing to supply side pressures, before settling close to the midpoint of the target range in 2022,” Diokno said.
The governor attributed the control of inflation to the “timely approval” of the temporary cut in pork import tariffs.
Going forward, Diokno said the risks to the inflation outlook remains balanced around the baseline parh in 2021, but is more skewed towards the downside in 2022.
Image courtesy of Nonie Reyes
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