Fuel prices, utility costs drive inflation to over 2-yr. high

Inflation rate accelerated to 2.7 percent in January, the fastest in 26 months since it registered at 3.7 percent in November 2014, data released  by the Philippine Statistics Authority (PSA) on Tuesday showed.

Higher prices of housing, water, electricity, gas and other fuels drove inflation to 2.7 percent in January 2017, from 2.6 percent in December 2016 the National Economic and Development Authority said in a separate statement.

It was slightly higher than the 2.6 percent inflation rate in December, and more than twice faster than the 1.3 percent in January 2016.

Prices of non-food items, which went up by 1.8 percent during the month, from 1.3 percent in December 2016, drove inflation higher, NEDA said.

OPEC and typhoons

“The faster spike in transport and gas and other fuels costs can be traced to the increase in petroleum prices as the oil market rebalances after the recent decision of the Organization of the Petroleum Exporting Countries (OPEC) to cut oil production by 1.2 million barrels per day,” Socioeconomic Planning Secretary Ernesto M. Pernia said.

The recent typhoons which stoked prices of rice also boosted inflation, the Cabinet official noted.

"The damage by Typhoons Karen and Lando may have contributed to the lower supply of rice, which slightly raised rice prices. In some areas like Cagayan Valley and Central Visayas, the planting calendar was delayed, which resulted in lower production in the fourth quarter,” he said. — Jon VIktor Cabuenas/VDS, GMA News