Philippines Inflation rate at record high

This is very bad news especially since last year inflation was quite low. The worst part of this is that so much of the increase is in food. Of course petroleum prices have also played an important role. No doubt many poorer Filipinos will have difficulty making ends meet or even feeding themselves and their families. The recent havoc wreaked by Fengshen has just added to the misery for some.


From Monsters and Critics.com
Business NewsPhilippines inflation rate jumps to 14-year high of 11.4 per centBy DPAJul 4, 2008, 3:54 GMT
Manila - The Philippines' inflation rate jumped to a 14-year high of 11.4 per cent in June from a year ago as food and fuel prices soared, the government said Friday.
The June index was higher than 9.5 per cent in May and 2.3 per cent in the same month last year, the National Statistics Office (NSO) said.
It is the highest inflation rate since May 1994, when the index was at 11.5 per cent.
The increase to double-digit rates was brought about by 'soaring prices of rice nationwide along with the upward adjustments of other food items,' the NSO said.
'Tuition fee hikes and the series of upward adjustments in petroleum products also contributed to the uptrend,' it added.
The food index alone rose to 17.4 per cent in June from 14.2 per cent in May.
The June index brought to 7.6 per cent the average inflation rate for the first six months of 2008 - already above the government's annual target of between 3.7 per cent and 4.4 per cent in 2008.
Last year, annual inflation averaged 2.8 per cent, a 21-year low, mainly due to the peso's appreciation against the US dollar.
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