KUWAIT CITY: Inflation rose in February due to a much heavier food basket, hitting a 27-month high, according to the National Economic and Development Authority (NEDA).
Preliminary data released by NEDA on Tuesday, March 7, showed that inflation hit 3.3% in February, up from the 2.7% seen at the start of the year.
“The inflation outlook for 2017 remains within the government’s target of 2.0 to 4.0%. However, risks to the inflation outlook appear to be tilted to the upside. This could drive inflation towards the higher end of the target,” said Socioeconomic Planning Secretary Ernesto Pernia in a statement.
NEDA attributed February’s jump mainly to faster price increases in rice, meat, fish, and vegetables which pushed up the food subgroup inflation to 4.3% in February from January’s 3.6%.
It also noted that the Philippines’ temporary ban on poultry imports from South Korea, Germany, France, the Netherlands, Czech Republic, and Kuwait in response to the avian flu outbreak may have contributed to the limited supply and driven up prices.
The higher rice prices were due to lower rice stock inventories, which fell by 17.9% from December 2016 to January 2017, due to the contraction in palay production in the 4th quarter of 2016, Pernia added.
The NEDA chief also warned that rice supply may be further strained as the National Food Authority’s memorandum allowed the entry of rice imports under the minimum access volume program only from October 2016 until February 28, 2017.
