Palace says increase in inflation rate 'expected'

The Marcos administration already expected the increase in inflation rate, according to Press Secretary Trixie Cruz-Angeles on Friday.

At a Palace press conference, Cruz-Angeles was asked if the government had expected the increase in inflation rate, which clocked in at 6.4% in July. She said the fuel price hike contributed to this increase.

"I understand that these were projected even before, given the inputs due to the international events that have led to the increase in the prices of petroleum. All of these have been factored," Cruz-Angeles said.

"And in fact it was even mentioned in the SONA (State of the Nation Address) of the President, so yes it’s part of it, we have expected this," she added.

The Philippine Statistics Authority said July’s inflation print is faster than the 6.1% rate recorded in June and the 3.7% posted in July 2021.

Last month’s inflation is a fresh three-year high since the 6.9% in October 2018, it added.

The Bangko Sentral ng Pilipinas said July's 6.4% inflation is “consistent with the BSP’s assessment of elevated price pressures over the near term on firmer indication of second-round effects.”

“The BSP recognizes the broadening of price pressures amid the emergence of second-round effects, including the approved wage and fare hikes as well as elevated inflation expectations. The risk to the inflation outlook is tilted on the upside for 2022 and 2023 but is broadly balanced for 2024,” it said.—AOL, GMA News