MalacaÃ±ang insisted that there is no cause for alarm in the 3.2 percent May inflation rate.
The May inflation rate is .2 percent higher than the 3 percent recorded last April this year.
Presidential Spokesman Salvador Panelo said, the 3.2% inflation rate in the month of May per our economic managers is attributed to a slight increase in some agricultural food products like vegetables, fish and fruits, as well as in housing, water and utilities.
According to Panelo, the rise is within the 2.8 % to 3.6 % range estimated by the Bangko Sentral ng Pilipinas (BSP) hence there is no cause for alarm.
Panelo added that the high spending in food and alcoholic beverages during the preceding campaign period coupled with the rise of international prices of fuel which is beyond government’s control and aggravated by the El NiÃ±o phenomenon in the peak summer month of May, resulting in food price inflation of fish and vegetable, spiked the inflation rate.
“Both factors are expected however to taper down. When the full impact of rice liberalization is felt, with rice prices falling down further, there will be a downtrend in the inflation rate. Current rice and corn price index already showed a decline of 0.7% and 2.8%, respectively,” Panelo said.
Panelo also assured that “the minimal increase in the inflation rate is a circumstance that does not toll the alarm bells.”