With the gradual recovery of the global economy, the Philippine economy is showing signs of accelerated growth. At the same time, the country's inflation rate has also begun to show an upward trend. Data provided by the Philippine Statistics Authority shows that the inflation rate has remained above 4% for three consecutive months.
Last year, the Philippine inflation rate fell from 9.3% the previous year to 3.2%, achieving the government's target of keeping the annual inflation rate within the 2.5% to 4.5% range. However, in December of last year, the inflation rate surged to 4.4%, marking the largest increase in eight months.
In January of this year, the Philippine Consumer Price Index increased by 4.3% compared to the same period last year. Although the inflation rate fell slightly to 4.2% in February, the core inflation rate rose from 3.0% to 3.6%, indicating that there is still potential upward pressure on the Philippine inflation rate.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. told the media that the current inflation rate in the Philippines remains within a controllable range. He stated that it is unlikely that the Philippines will raise interest rates in the first half of this year, unless there is an unexpected event that causes a rapid rise in the inflation rate.
The central bank's inflation control target for this year is between 3.5% and 5.5%. The bank predicts that the annual inflation rate will not exceed 5.5%.
Economists here attribute the rise in the Philippine inflation rate to increases in the prices of fuel, electricity, water, and food, as well as water and power shortages and reduced rice production caused by the El Niño phenomenon.
Affected by rising international demand and supply shortages, the price of white sugar in the Philippines rose sharply some time ago, from 43 pesos per kilogram (1 US dollar is approximately 45.56 pesos) to 48 pesos. To stabilize sugar prices, the Philippine government had to import 150,000 tons of raw sugar, release 15,000 tons of national sugar reserves, and encourage private enterprises to increase imports. In addition, the prices of essential food items such as rice, bread, pork, and chicken have also risen to varying degrees.
