Metro Manila, Philippines — Rising electricity and water costs during the dry season could further drive inflation upward, as both utilities carry significant weight in the consumer price index, the Philippine Statistics Authority (PSA) warned.
In a briefing on Tuesday, May 5, Undersecretary and National Statistician Dennis Mapa said electricity and water make up a chunk in the inflation basket and rising costs could substantially lift the overall inflation rate.
“‘Yung paggalaw sa presyo ng kuryente at pag galaw sa presyo ng supply ng tubig, ito ay mga close sa 6 percent” Mapa said.
[Translation: The movement of rates in electricity and water supply is close to 6 percent.]
“If there are any increases there it would definitely impact the overall inflation rate,” he added.
Mapa said electricity accounts for 4.55 percent of the inflation basket, while water is 1.16 percent. He noted that these commodities weigh heavier in the capital region.
He said power and water demand are bound to rise due to the heat, potentially impacting inflation.
Inflation accelerated to 7.2% in April, marking a 3.1-percentage-point jump month-on–month as food and fuel prices reached record highs.
Consumers have recently taken online concern over high electricity rates, calling for inquiry amid sudden jumps in household bills.
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State meteorologists said the dry season may last until this month.
