June inflation likely clocked in at 4.9% —DOF

Inflation is expected to have picked up pace in June due to higher costs of education and food, the Department of Finance (DOF) said Tuesday.

The DOF said inflation likely accelerated to 4.9 percent in June from 4.6 percent in May and 2.8 percent in June 2017.

“Month-on-month inflation adjustment may be due mainly to two items—2.43-percent month-on-month rise in education during the opening of classes and 2.27 percent rise in vegetable prices that usually accompanies incessant rains at the onset of the wet season,” the department said in its Economic Bulletin on Inflation Forecast.

In terms of yearly acceleration, the increase is expected to have been driven by higher prices of vegetables during the period.

The DOF cited higher electricity rates in June, with clients of Manila Electric Co. consuming 200 kilowatts hour per month paying P9.99 per kWh.

This is higher than the P8.18 per kWh in June 2017, but lower than the P10.00 per kilowatt-hour in May 2018.

The Development Budget Coordination Committee has raised its full-year inflation forecast to 4.0 to 4.5 percent, compared with the 2.0- to 4.0-percent target.

“If you have somebody who’s coming in here to invest, they will always find people to tell them ... the real score. Nobody will come in blindly. We share what’s going on and that gives them confidence,” Barcelon noted.

The Philippine economy grew by 6.8 percent in the first quarter of the year.

The government is aiming for a full-year growth of 7.0 to 8.0 percent. —Jon Viktor Cabuenas/VDS, GMA News