Metro Manila, Philippines – Inflation, or the pace by which the cost of goods and services rise, accelerated to 7.2% in April, marking a 3.1-percentage-point jump from March driven by record-high food and fuel prices, the Philippine Statistics Authority (PSA) reported on Tuesday, May 5.
The government forecast range is 5.6 percent to 6.4 percent, with the latest imprint as its fastest pace in more than three years since the 7.6 percent in March 2023.
The PSA said inflation drivers are food and non-alcoholic beverages, transport, fuel, and household utilities such as electricity and water.
The inflation for diesel and gasoline spiked by 124 percent and 60.5 percent, respectively, hitting record-highs since 2018.
The year-to-date inflation average is 3.9%, near to breaching the 4 percent upper limit of the government target range.
Core inflation, which excludes volatile food and energy items, also increased to 3.9% in April from 3.2% in March.
Purchasing power
Meanwhile, the PSA said the purchasing power of the peso dropped to 73 centavos —the lowest since the agency rebased figures in 2018.
The low purchase power means that ₱100 is worth only ₱73 when buying basic items.
“When inflation increases, the consequence is the purchasing power of the peso declines,” said National Statistician Dennis Mapa.
The PSA chief also explained that the peso’s depreciation against the dollar was also a significant driver in the value drop.
The peso slid to a new record low of ₱61.56 against the greenback on April 29.
Lawmakers have urged the government to address the inflation rate spike, calling for subsidies and financial aid to the most affected sectors.
