Higher food, utility prices hike October inflation to 5.2%

MANILA, Philippines – Higher food and utility prices pushed up inflation rate to 5.2% in October 2011, according to the National Statistics Office (NSO).

Inflation, or the cost of goods and services, has been on a steady increase in the past three months. In September, the 2006-based inflation rate was at 4.8%

Heavily weighted food index rose to 5.8% in October from 5.2% in September due to the following:

• Vegetables, up 19.9% from 10.7%
• Corn, 12.7% from 11.5%. 
• Fish, 8.5% from 7.8%
• Milk, cheese and egg, 2.9% from 2.8%
• Fruits, 7.2% from 6.6%
• Other food products, 3.2% from 2.9%

Meantime, below are the annual rates of increment for various goods:

• food and non-alcoholic beverages, 5.7% in October from 5% in September;
• alcoholic beverages and tobacco, 6.2% from 6.1%;
• housing, water, electricity, gas and other fuels, 6.5% from 5.7%
• transport index, 6.7% from 7.1%. 

For the National Capital Region (NCR), the annual inflation rose to 4.9% in October from 4.2% in September.

This was due to higher increases in the indices of food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and health.

For areas outside NCR picked up to 5.3% in October from 5% in September as higher annual upward adjustments were registered in food and non-alcoholic beverages; alcoholic beverages and tobacco; and in housing, water, electricity, gas and other fuels indices.

The government targets an annual inflation rate of 3% to 5% for year 2011.