Malacañang on Tuesday vowed to monitor the prices of basic goods and services as the inflation rate had slowed to 4.4 percent in January from 5.1 percent in December 2018.
Presidential Spokesman Salvador Panelo welcomed the drop and cited the “strong and decisive action” of President Rodrigo Duterte in addressing the conditions contributing to high inflation.
“The Palace is pleased with the good news that for the third straight month inflation continues to drop, registering at 4.4 percent in January 2019,” Panelo said in a statement.
“Last year soaring prices caused by uncontrollable factors tested our will as a nation. Not disheartened nor cowed, we rose to the challenge as a people.”
But despite the slower inflation in January, consumers could expect commodity prices to rise in the coming months, starting this month, as the second round of increase in fuel excise taxes goes in full swing, the think tank IBON Foundation said Tuesday.
The group said the January inflation was a welcome development, but commodity prices could be expected to jump as the second round of fuel excise tax increases starts to bite, IBON Foundation executive director Sonny Africa told GMA News’ Balitanghali.
Panelo said the Duterte administration would continue to carry out measures to make Filipinos feel the effects of slower price increases and live a more comfortable life.
”With inflation further tapering down to a 10-month low of 4.4 percent, this administration will oversee and ensure that its consequent effects at the market would be felt by the ordinary consumer,” Panelo said.
“We will remain on guard in monitoring the prices of basic goods and commodities as we aim to mitigate poverty and hunger, driven by the President’s economic goal to lay down and build the foundation to a comfortable life for the present and future generations.”
The Philippine Statistics Authority attributed the slowdown in inflation mainly to the slowdown in the annual increase in food and non-alcoholic beverages at 5.6 percent from 6.7 percent in December 2018.
The agency said slower price increases in food and non-alcoholic beverages, alcoholic beverages and tobacco and transport fares contributed to the slowdown in the inflation rate.
National Statistician Lisa Grace Bersales said inflation dropped despite the implementation of the second fuel excise tax increase under the Tax Reform for Acceleration and Inclusion Law as many gasoline stations had yet to include the excise tax for January.
The second package of the TRAIN Law imposes an additional 2-peso tax for every liter of diesel and gasoline, P1 for every liter of kerosene and P1 for every kilogram of liquefied petroleum gas.