Feb. inflation spikes to 3.4 percent — PSA

Inflation in the country rose slightly in February due to higher prices of food, transport and utilities.

Philippine Statistics Authority data released on Tuesday showed the headline inflation rate, or the rate of increase in the prices of goods and services, rose slightly to 3.4 percent.

The latest figure exceeded the 2.8-percent headline inflation rate in January but fell below the 8.6 percent reported in February 2023.

The year-to-date inflation rate stood at 3.1 percent, still within the government’s target range of 2 percent to 4 percent. However, this is the first increase in the inflation rate after a downtrend for four consecutive months.

Core inflation, which excludes volatile food and energy items from the consumer basket, eased to 3.6 percent from the previous month’s 3.8 percent.

“The uptrend in overall inflation last February was primarily influenced by the higher year-on-year increase in heavily-weighted food and non-alcoholic beverages at 4.6 percent during the month from 3.5 percent in the previous month,” the PSA said.

PSA attributed more than half of the total inflation, or 52.1 percent, to food and alcoholic beverages. Food inflation increased to 4.8 percent from 3.3 percent in January, mainly due to a slower decline in price growth, reaching 11.0 percent for vegetables, tubers, plantains, cooking bananas and legumes.

In a virtual briefing, PSA chief and National Statistician Claire Dennis Mapa said that rice continues to be a significant factor in inflation.

The PSA observed that rice inflation in the National Capital Region rose to 15.5 percent in February, up from 14.6 percent in January. Additionally, meat prices increased by 0.5 percent in February compared to a decline of 2 percent in January.

However, last month, fish, fruits, bread, and milk experienced slower price increases in the NCR.

At the national level, transport costs increased by 1.2 percent in February, contrasting with a 0.3 percent decline in January. Moreover, housing, water, electricity, gas, and other fuel costs accelerated to 0.9 percent from 0.7 percent in January, contributing to faster inflation.

Alcoholic beverages and tobacco also saw a slight uptick, reaching 8.6 percent in February 2024 compared to 8.4 percent in the previous month.

The government must zero in on the supply of rice, a key driver of the uptick in the inflation rate in February, Albay Rep. and economist Joey Salceda said.

“If the government must be obsessed with one thing, it must be rice. Rice is up 23.7 percent year-on-year, and month-on-month inflation was at an elevated 1.0 percent,” he said.

Salceda turned the spotlight on the supply and cost of rice as the other major indicators of inflation, even as some vegetables and corn saw price drops.

“On the aggregate, utility bills are down versus last year. Even sugar prices are down on a year-on-year basis,” he said.

He added that the government must put interventions in place and be “laser-focused” on the staple grain.

He also turned down the proposal to increase imports at this time since the harvest season begins in April, and the election in India, which has imposed a rice export ban, will take place in May.

The DA, he said, must ensure that all post-harvest support is ready by April.

With VIVIENNE ANGELES