Home Inflation rate accelerates to over 3-year high of 4.9% in April 2022

Inflation rate accelerates to over 3-year high of 4.9% in April 2022

inflation rate at 4.9 percent april 2022

MANILA, PHILIPPINES — The Philippine Statistics Authority announced on Thursday that annual inflation rate in April 2022 was 4.9 percent, the highest in more than three years, with food and energy costs leading the way.

The latest rate, which is the fastest since December 2018, is the first time inflation has surpassed the Bangko Sentral ng Pilipinas 2-4 percent target band for the year.

The April rate also pushes the 2022 average inflation to 3.7 percent.

National Statistician Claire Dennis Mapa stated in a video briefing that food and non-alcoholic beverages were the main sources of inflation for the month, with prices rising by 3.8 percent and contributing for 51.5 percent share to the uptrend. 

This comes after price increases of 9.2 percent for vegetables and tubers, 4.2 percent for meat and other items, and 5.0 percent for fish and other seafood.

Meanwhile, transportation costs increased by 13.0 percent, above the 10.3 percent increase seen in March. This contributed to 27.8 percent of the overall upward trend.

Diesel costs increased by 83.7 percent, gasoline prices increased by 43.0 percent, and passenger transportation by sea increased by 13.6 percent.

According to the most recent figures available from the Department of Energy, year-to-date changes for gasoline, diesel, and kerosene total P15.45 per liter, P27.35 per liter, and P21.55 per liter, respectively.

Other than electricity and gasoline costs, economists at the Bangko Sentral ng Pilipinas (BSP) previously stated that meat and fish prices were among the primary sources of inflationary pressures in April.

Interest rates were kept low by BSP Governor Benjamin Diokno to aid the economy’s recovery from the pandemic, although he has recently hinted that a raise could happen in June.

The BSP identified local food shortages and the potential impact of rising oil prices on transportation charges as near-term upside risks. Meanwhile, the ongoing threat of COVID-19 cases and the advent of additional variants could slow the global economic recovery and force governments to tighten their measures. – WhatALife!

Source: (gmanetwork.com)

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