06 February 2018
· Inflation rate in the first month of 2018 surged to 4% on the back of higher food and non-food prices alike. While price of rice has remained stable, that of other commodities such as non-alcoholic beverages which were affected by the tax on sugar-sweetened beverages in the TRAIN Law and vegetables, by weather disturbances.
· The utilities and fuels sub-group saw average price increase by 7.2%, slower than 8.4% in December.
· The prices of sin products increased by 12.3% even as specific excises were adjusted by only 4% as the sin tax law provides.
· The 4% inflation rate is still within the 2-4% target range although it is at the topmost end of the range.
Table 1: Inflation Rate by Commodity Group vs DOF Forecasts and Contribution to Inflation