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STOPPING THE TRAIN Members of poor urban groups are protesting on Thursday against the Philippine National Railways crossing the Boulevard España in Manila to dramatize the difficulties caused by the law on tax reform for the Philippines. acceleration and inclusion. GRIG C. MONTEGRANDE
Inflation climbed faster than expected at 5.2% year-on-year in June, the highest in more than five years, due to food products and "sin" products more expensive, the government reported Thursday. 19659003] The Bangko Sentral ng Pilipinas (BSP) promised to bring the inflation rate back to its 2-4% target range under increasing pressure for more interest rate increases than the two facts this year. year.
The Philippines Statistics Authority (PSA) The June consumer price index was higher than the 4.8% forecast of a Reuters poll by economists. the average inflation rate to 4.3% in the first half.
& # 39; Manageable & # 39;
Ernesto Pernia, Secretary for Socio-Economic Planning, said at a press conference that the June inflation rate was "rather unexpected".
"Most observers" Pernia, who is also at the head of the National Agency for Economic Planning and Development (Neda).
He said, however, that he thought the average inflation rate of 4.3% over six months "Manageable."
Malacañang said that the faster inflation rate was "not to worry about."
Presidential spokesman Harry Roque said the rise in inflation was due to "cash flowing".
He also cited the increased purchasing power of citizens as a result of tax reforms and free tuition fees in colleges and state universities.
EPS data showed that prices for alcoholic beverages and tobacco rose 20.8% in June; housing, water, electricity, gas and other fuels, 4.6%; furnishings, household equipment and routine maintenance of the home, up 3 percent; transportation, up 7.1%; communication, up 0.4%; Last month's inflation marked the fourth month as the pace of price increases was faster than the 2-4% BSP comfort range for this year. and then, leaving the door open for a third interest rate hike this year
Rising inflation, attributed to the application of the law on tax reform for the year. acceleration and inclusion (TRAIN) early January, weak peso and strengthening of world prices The TRAIN law raised the ceiling of tax-exempt incomes, but imposed excise duties on petroleum products despite the tax on the value added on fuels and imposed higher taxes on tobacco,
Under the TRAIN law, the excise duty on cigarettes rose to 32.50 pesos per package as from 1 January against 30 per pack last year.
every year under the Income Tax Reform Act of 2012. [1 9659021] TOP PRIZES The latest government newsletter announcing an inflation rate of 5.2% in June should trigger a new wave of vegetable price increases at QMart in Quezon City. – JAM STA. ROSA
Food Prices
Starting in July, the excise duty on cigarettes will rise to 35 pesos per package, as required by the TRAIN Act.
Improved tax compliance with Mighty products Japan Tobacco International was also accused by the Ministry of Finance of pushing up cigarette prices, with the correct tax payments pushing retail prices up. of the brand.
The food index rose 5.8% in June in rice (up 4.7 percent); corn (up 14.1 percent); other cereals, flour, preparation of cereals, bread, pasta and other bakery products (up 2.4 per cent); meat (up 5 percent); vegetables (up 8.6 percent); sugar, jam, honey, chocolate and confectionery (up 3.9 per cent); At the end of the first half of the year, overall inflation averaged 4.3%, exceeding the government's target range of 2-4%.
Overall inflation in the National Capital Region The rate out of Manila climbed to 5.1% from 4.6% the previous month.
Pernia said that inflation could peak in the third quarter and decline in October.
But he told reporters later that the government still hoped the peaks would occur, and could reach a plateau in the next quarter as rice imports decline, as world oil prices begin to fall. drop. in production in Russia and Saudi Arabia offset the sanctions imposed on the main producers Venezuela and Iran.
Rice Imports
Neda Deputy Secretary Rosemarie Edillon said that "if oil prices were As for rice prices, Mr. Edillon said the first deliveries Rice from the National Food Authority had been made "so as to relieve another factor of inflation." [19659003] On Monday, economic managers conceded that inflation would probably in violation of the target for 2018 because they adopted the BSP 's forecast of 4-4.5% for the entire year.
While keeping the goal of. inflation of 2-4% for 2018- In 2020, the Cabinet-level Development Budget Coordination Committee increased its expected rate of increase in core commodity prices for this year compared to previous forecasts 2-4% at its previous meeting in April.
For the period 2019-2022, the annual inflation forecast was maintained at 2-4%. – WITH CHRISTINE O. AVENDAÑO'S REPORTS
