May inflation stable at 2.6%

Rappler.com
This brought the average inflation rate for the first 5 months of 2013 to 3% — the low-end of the 2013 full-year target

MANILA, Philippines – Prices of goods and services remained stable at 2.6% in May, the same rate as in April, despite the implementation of the sin tax reform law. 

This brought the average inflation rate for the first 5 months of 2013 to 3% — the low-end of the 2013 full-year target range of 3% to 5%.

“The stable general inflation rate in May 2013 relative to the previous month was a result of the slower price increases of major commodity groups counterbalancing the higher growth in prices of selected food items and lower cutbacks in domestic petroleum prices,” Socioeconomic Planning Secretary Arsenio M. Balisacan said in a statement.

The headline inflation in May was lower compared to the 2.9% rate in May 2012.

Sin tax

Balisacan noted that prices of cigarettes and alcohol — both affected by the historic passing of the sin tax law in December 2012 — did not affect inflation in May 2013.

“The inflation rate of alcoholic beverages and tobacco remained elevated at 31.1% owing to the lingering effects of higher sin taxes that took effect early in the year,” Balisacan said.

“However, this rate was marginally lower than the previous month’s 31.4%,” explained Balisacan, who is also National Economic and Development Authority (NEDA) Director General.

Slower growth in prices was recorded for major commodity groups such as

  • alcoholic beverages, tobacco and narcotics – 31.1% from 31.4%
  • clothing and footwear – 3.5% from 4.2%
  • furnishings, household equipment and routine maintenance of the house – 3.7% from 4.0%
  • health – 2.7% from 3.1%
  • communications – 0.1% from 0.3%
  • recreation and culture – 1.7% from 1.8%
  • restaurants, miscellaneous goods and other services – 2.3% from 2.7%


Core inflation

Core inflation, which excludes volatile food and energy prices, further eased to 3% in May 2013, slightly slower than the 3.1% in April and 3.7% in May 2012.

This brought the average core inflation from January to May at 3.4%. – Rappler.com

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