Manila, Philippines – Inflation to stabilized at 3.3 percent in January as per Department of Finance (DOF).
DOF stated that this month’s inflation might remain intact at 3.3 percent. December 2017 holds the same rate level. There may be a rise in transport rate, but it was offset by the drop in clothing, utilities, and housing prices. It helped to slow down the rapid growth in inflation.
Transportation costs would be likely to climb up to 3.1 percent. This rate is slightly faster than the recorded 2.4% last month. This is due to the increase of fuel rate implemented last December. It may now take its toll on its consumers and, possibly, to affect other goods in the market, too.
The diesel’s price increase to about P2.93. From its previous price of P36.20 per liter; it hiked to P39.13. While the cost of gasoline follows with an increase of about P2.36. From its last month’s price of P48.12 liter; it climbed up to P50.48.
Prices of food and non-alcoholic beverages may remain fixed at 3.5 percent and the non-food items at 2.9 percent. However, the alcoholic drinks and tobacco may have risen to 6.7 percent compared to its previously recorded 6.4 percent rate level.
Footwear and clothing prices decreased from 1.8 percent down to 1.6 percent. The cost increase in recreation and culture also lowered by 0.1 percent from 1.5 percent down to 1.4 percent.
Even the kilowatt per hour dropped from P9.25 in December to P8.72 this January. The electricity rates were provided by Manila Electric, Co. As long as this utility doesn’t ascend sky high, we should be good.
As the transport rates increases, other commodities decrease on the other end of the scale. Although, this may also be a late response from the petroleum and transport prices increase.
The rise in energy prices will also affect the increase the cost of production and transport to arise. Then, everything will go uphill. If inflation soars high, it won’t be good not just for the economy but for every individual as well. This will affect everyone’s cost of living with a great deal.
Though, with these current rates and offsets happening in the economy, that may not likely to happen anytime soon. Well, hopefully. This 3.3 percent may look firm, but it is still faster than December 2016 rate of 2.7 percent.
For continuous growth in the economy, this rate should be tempered down in a steady flow. DOF said that to maintain the economic growth, prices should be maintained well. The steady flow is still more ideal than to be stagnant.