|
Transportation and communication costs climbed 12.4 per cent last month compared to June the previous year, after rising 8.6 per cent in May. -- PHOTO: AFP
|
MANILA - FOOD and fuel price hikes pushed the Philippines' inflation rate last month to its highest level in 14 years, an official said on Friday.
Acting Socio-Economic Planning Secretary Augusto Santos said 'continuous price increases of cereals and fuel' have raised annual inflation in June to 11.4 per cent from 9.5 per cent in May.
That's the highest rate since May 1994, when consumer prices rose 11.5 per cent.
Mr Santos said the latest figure has brought the average inflation rate for the first six months to 7.6 perc ent, higher than the government's target of 3 per cent to 5 per cent for the whole year.
A spokesman for President Gloria Macapagal Arroyo said food price increases 'may seem to be the order of the day, but the government will not tolerate hoarders and vultures who will prey on our consumers'.
The central bank had predicted the double-digit inflation. In a statement two days earlier, it also projected inflation to average between 7 per cent to 9 per cent for the year, above the government's target. It projected inflation to decline to 4 per cent to 6 per cent in 2009.
The National Economic and Development Authority said the prices of cereals - chiefly rice and corn - increased by 42.2 per cent in June from the same month a year ago, compared with a rise of 31.4 per cent in May.
Fuel prices rose 22 per cent in June from a year ago, up from an increase of 18.2 per cent in May.
Transportation and communication costs climbed 12.4 per cent last month compared to June the previous year, after rising 8.6 per cent in May.
The opening of classes in June also raised expenses for education, providing a significant boost to inflation, the economic planning agency said.
Presidential spokesman Lorelei Fajardo said the government is 'committed to seek ways to soften the impact of inflation'.
'In the meantime, we urge all sectors of society to help in the government's efforts to conserve on fuel. Also, we urge our food manufacturing sector to be sensitive to our consuming public,' she said in a statement. -- AP
|
