Metro Manila (CNN Philippines, June 4) — Over a year into the coronavirus lockdown and with millions of Filipinos remaining jobless, the rate of increase in the prices of goods in May was still higher than the government’s target.
While the inflation was unchanged for the third straight month at 4.5%, the number remained above against the 2% to 4% target band set by the government.
The Philippines’ moves to shore up pork supply has yet to temper meat inflation, which stood at 22.1% last month, National Statistician Dennis Mapa said in a virtual briefing on Friday.
Mapa, however, said that effects of pork imports—intended to address rising prices—may reflect in June inflation rate.
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While the meat segment led the pack, fish also rose to 7.8%, making food and non-alcoholic beverages the main driver of the inflation. This group recorded a 39.5% share in the overall inflation print.
Data from the Philippine Statistics Authority also showed that transportation got the second biggest share at 29.8%. Although lower than April’s figure, tricycle fare still led the group at 38.8%. It was followed by petroleum and fuels at 33% and jeepney fare at 6.3%.
Expenses for restaurant meals, items for personal hygiene also rose for the month at 3.8%, the PSA said.
The PSA also noted faster inflation in housing, water, electricity, gas, and other fuels.
The health basket also went slightly up at 3.2% against the 3.1% posted in March.
Inflation in Metro Manila eased to 3.6% from 3.7% a month ago.
“Ang dahilan ng pagbaba ng inflation nitong Mayo 2021 ay ang mas mabagal na paggalaw ng presyo ng Transport,” Mapa said.
[Translation: The reason for the lower inflation in May 2021 is the slower movement of the price of Transport.]
Corn, fruits, and vegetables in the National Capital Region also recorded negative inflation in the period. However, fish surged to 7.1% from 2.9% in April.
Inflation in areas outside the capital region was flat at 4.7% in May.
In a report issued Friday, ANZ Research said the inflation rate may touch the 2% to 4% levels in the third quarter of 2021.
“Although a host of demand pull and supply forces are currently weighing on inflation, a pullback into the target range is still likely in the coming months,” ANZ Research said.
CNN Philippines digital producers Lisbet Esmael and Pilar Manuel contributed to this report.
