The Philippines’ inflation rate surges to 4.9% in August.
The headline inflation at the national level jumped to 4.9 percent in August 2021, from 4.0 percent in July 2021. This is the highest inflation recorded since January 2019.
With the August 2021 inflation, the Philippines’ average inflation from January to August 2021 stood at 4.4 percent.
In August 2020, inflation rate was lower at 2.4 percent.
The uptrend in the country’s inflation was mainly brought about by the higher annual increment in the index of the heavily-weighted food and non-alcoholic beverages at 6.5 percent during the month, from 4.9 percent in July 2021.
Moreover, recreation and culture index went up by 0.5 percent in August 2021, after recording annual decreases since August 2020.
Annual increases were also higher in the indices of the following commodity groups:
Alcoholic beverages and tobacco, 10.3 percent;
Clothing and footwear, 1.8 percent;
Housing, water, electricity, gas, and other fuels, 3.1 percent;
Furnishing, household equipment and routine household maintenance, 2.5 percent;
Transport, 7.2 percent; and
Restaurant and miscellaneous goods and services, 3.8 percent.
The other commodity groups, i.e., health, communication, and education, retained their previous month’s annual growth rates.
Excluding selected food and energy items, core inflation, likewise, picked up to 3.3 percent in August 2021, from 2.9 percent in July 2021. In August 2020, core inflation was posted at 3.1 percent.
For food index, the annual growth rate at the national level accelerated to 6.9 percent in August 2021, from 5.1 percent in July 2021. It was observed at 1.7 percent in August 2020.
By specific food item, double-digit annual growth rates were noted in the indices of meat at 16.4 percent; fish, 12.4 percent; and vegetables, 15.7 percent.
Annual hikes were also higher in the indices of the following food groups:
Corn, 8.7 percent;
Other cereals, flour, cereal preparations, bread, pasta, and other bakery products, 1.8 percent;
Oils and fats, 4.8 percent;
Sugar, jam, honey, chocolate and confectionery, 1.2 percent; and
Food products not elsewhere classified, 1.6 percent.
Moreover, inflation for fruit inched up to 0.1 percent, from an annual drop of -0.6 percent in the previous month. Furthermore, the annual decline of -0.4 percent in rice index during the month was slower relative to its previous month’s annual decrease of -1.0 percent.
Meanwhile, milk, cheese and egg index retained its previous month’s annual growth of 0.6 percent.