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may inflation - highest in 9 years! naku, patay na!

Central bank sees 9-year-high inflation in May


By Doris Dumlao
Philippine Daily Inquirer
First Posted 03:16:00 05/31/2008


MANILA, Philippines — Consumer prices in the Philippine may have risen at the fastest pace in nine years this May, mostly because of unabated increases in fuel prices and the consequent hike in transport fares, the central bank, Bangko Sentral ng Pilipinas (BSP), said Friday.

The BSP expects year-on-year inflation in May to reach a range of 8.8-9.6 percent after reaching a three-year high of 8.3 percent in April, BSP Governor Amando Tetangco Jr. told reporters.

The high end of the range would mean the fastest increase in consumer prices since January 1999, when the inflation rate was recorded at 10.5 percent.

Tetangco said noted the surge in world oil prices, the climb in domestic pump prices, and a provisional increase in transport fares. "These supply shocks are also expected to affect food prices particularly those of rice, meat, fruits and vegetables and other miscellaneous food items," he said.

The peso's drop against the US dollar may also have added pressure on consumer prices, Tetangco added.

The peso hit a seven-month low of 43.925 to the dollar Thursday on concerns that rising oil prices could further drag down economic growth. It closed at 43.750 to the greenback on Friday.

The January-April inflation average reached 6.2 percent, compared with the central bank's full-year target of 3.0-5.0 percent.

"As I've said before, we will remain vigilant and act preemptively and decisively once we see signs that our inflation outlook for 2009 is at risk and inflation expectations are being dis-anchored," Tetangco said.

Official May inflation data will be released on June 5, the day the central bank holds its rate-setting policy meeting. Policymakers kept the overnight borrowing rate at 5.0 percent and overnight lending rate at 7.0 percent at the last two meetings.

Economists are divided on whether the BSP will raise its rates next week, for the first time since 2005. On Thursday, Tetangco said there would be some inflation relief coming from slower growth in the economy in the first quarter.

Some economists see inflation moving closer to 10 percent, and may prompt the BSP to raise rates for the first time since October 2005 despite a cooling economy. Many are looking at a rate hike of a quarter-percentage point next week.

It will be a tough call for the central bank, which is also likely to take into account slackening economic growth.

"The bias is for the central bank to reverse its relaxed monetary policy to that of tightening a little because of inflationary pressures," said Jose Vistan Jr., research director at AB Capital Securities Inc.

"I would imagine that adjustments, if there would be [any], would be small and policymakers will have a hard time striking a balance—sustaining economic growth and keeping a reasonable inflation level," he said.

The central bank "should do whatever possible to keep growth above 5.0 percent, but raising rates too much would put additional burden on the economy, so rate adjustments will likely be minimal," Vistan said.

Data released on Thursday showed growth in the gross domestic product slowing down to 5.2 percent in the first quarter from 6.4 percent in the previous quarter and 7.0 percent in the first quarter of 2007.

Growth slackened as a slowdown in the United States weakened exports and soaring food and energy prices hurt consumer spending. With reports from Reuters and Thomson Financial; edited by INQUIRER.net
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Comments

  • Gov’t trims three-year growth targets



    Thomson Financial
    First Posted 16:54:00 05/30/2008


    MANILA, Philippines -- Soaring food and oil prices are likely to cap economic growth in the Philippines over the next three years, the government said on Friday.

    A day after announcing that economic growth slowed to 5.2 percent in the three months to March, Manila said it has trimmed the economic growth targets to between 5.7 and 6.5 percent for 2008, 6.2 percent to 7.0 percent for 2009 and 6.8 percent to 7.6 percent for 2010.

    "The revised growth targets are brought about by accelerating worldwide inflation, given higher food prices and record-high and more volatile Dubai crude oil prices caused by supply and demand concerns," the budget department said in a statement.

    The department also cited the strong peso, which the government expects to stay within the 42-45 to the dollar range, and lower export shipments amid slowing global demand.

    Merchandise exports are likely to grow at a slower rate of 6.0 percent this year and next before rising by 8.0 percent in 2010, it said.

    The central bank said Friday that the May inflation rate was likely to be at the 8.8 percent to 9.6 percent range after rising to a three year-high of 8.3 percent in April.

    The May data is due for release on Thursday.

    The government has said it will spend more this year to help the poor cope with surging food and fuel costs, and that the aim of a balanced budget for 2008 has been pushed back for 2010.
  • kelangan na naman ng bagong controversy para maitago ang 9 year high inflation rate!
  • It's this kind of news that tickles the minds and senses of the ts. These are the kind of people who wish ill for the country. They get orgasmic whenever they hear negative news on the economy.
  • yes, the truth is orgasmic, unlike others were lies, corruption, dishonesty, failed performance ratings, illegal moves are orgasmic.

    ano nga ang sabi dito sa LAFI?
    moral bankruptcy hits the fan!
  • hubcap wrote: »
    yes, the truth is orgasmic, unlike others were lies, corruption, dishonesty, failed performance ratings, illegal moves are orgasmic.

    ano nga ang sabi dito sa LAFI?
    moral bankruptcy hits the fan![/QUOTE]

    That has already been amended. It's now HYPOCRISY AND SELF-RIGHTEOUSNESS HITTING MORE CEILING FANS!:D
  • you dont understand what those words mean, same way as you dont understand the meaning of the word greed or the issues involved in the meralco mess that gsis created.
  • ^^^ows, really.....Of course, I clearly understand those words. That's as simple as abc or 123. But let me know if you need further explanation.....
  • pianpian PExer
    Sige, kasalanan ni GMA kung bakit mataas yung worldwide price ng krudo, kung bakit may rice crisis. Pabagsalin si GMA!
  • SyChuanSyChuan PEx Veteran ⭐⭐
    Last year the average was around 3 to 4% only.

    The Government and the Filipinos were able to tame the inflation rate amid already high oil prices last year, This year with the rice crisis and even higher oil prices everyone must stand firmer, tighten our belts.

    This year we need to deploy more OFWs, and we should send more remittances so as Philippine inflation rate will be the same as last year.

    Last year was the beginning of the world crisis, yet inflation rate was low, remittances and investments was high. This year the Philippines may start or are starting to feel the effects of this world crisis.

    The Government (all three branches) together with the Filipino people should work harder. Eliminate the nonsense political noise and stupid no remmittance day. Stand together, put aside differences, as we are all in the same boat, if the boat sinks we all die.
  • SyChuan wrote: »
    Eliminate the nonsense political noise and stupid no remmittance day. Stand together, put aside differences, as we are all in the same boat, if the boat sinks we all die.
    In times of crisis, some people would rather rock the boat and feel orgasmic (watta word:D ) when the boat sinks further....

    Weird but true.....
  • SyChuan wrote: »
    Last year the average was around 3 to 4% only.

    The Government and the Filipinos were able to tame the inflation rate amid already high oil prices last year, This year with the rice crisis and even higher oil prices everyone must stand firmer, tighten our belts.

    This year we need to deploy more OFWs, and we should send more remittances so as Philippine inflation rate will be the same as last year.

    Last year was the beginning of the world crisis, yet inflation rate was low, remittances and investments was high. This year the Philippines may start or are starting to feel the effects of this world crisis.

    The Government (all three branches) together with the Filipino people should work harder. Eliminate the nonsense political noise and stupid no remmittance day. Stand together, put aside differences, as we are all in the same boat, if the boat sinks we all die.

    e ano naman ang sasabihin ng gobyerno na dapat nating gawin? may sinabi na ba? so far puro crisis - rice crisis, ngayon naman pang-aapi sa meralco.
  • Fuel prices up by P1.50 a liter


    By Abigail L. Ho
    Philippine Daily Inquirer
    First Posted 14:38:00 05/31/2008


    MANILA, Philippines -- As the weak dollar continued to pull oil prices up in the world market, local oil firms passed the burden on to consumers by jacking up gasoline, diesel and kerosene prices by P1.50 a liter yet again.

    Pilipinas Shell Petroleum Corp. raised prices at 12:01 a.m. Saturday, followed by Petron Corp., Chevron Philippines Inc., Total (Philippines) Corp., Seaoil Philippines Inc. and Eastern Petroleum Corp. at 6 a.m.

    Total also increased the price of its liquefied petroleum gas by P1.12 a kilogram, including the 12-percent value-added tax.

    tulad ng sinubukan gawin ng gobyerno/gsis/garcia sa meralco, hindi ba dapat i-take over din nila ang shell, caltex at petron? ang dahilang ginamit sa sinubok na pag take over sa meralco ay para daw mapa-ibaba ang presyo ng koryente, e di ganon din dito - kailangan i-take over ng gobyerno ang mga nagbebenta ng langis para maibaba ang presyo! baka may management inefficiency din dito. o kaya system loss. kilos mga apologist!
  • hubcap wrote: »
    tulad ng sinubukan gawin ng gobyerno/gsis/garcia sa meralco, hindi ba dapat i-take over din nila ang shell, caltex at petron? ang dahilang ginamit sa sinubok na pag take over sa meralco ay para daw mapa-ibaba ang presyo ng koryente, e di ganon din dito - kailangan i-take over ng gobyerno ang mga nagbebenta ng langis para maibaba ang presyo! baka may management inefficiency din dito. o kaya system loss. kilos mga apologist!

    bakit di ka tumakbong pagkapresidente sa susunod na election...eh parang ang galeng galeng mo naman eh bwehehehehehee

    o baka naman puro satsat ka lang..at ikaw mismo walang ginagawa para makatulong sa pag-unlad ng bansa...baka puro ka lang reklamo..wala kang pinagiba sa mga militante/npa/cpp/ndf at mga taga opposition..

    imbes gumawa ng bagay na makakatulong maiahon ang kahirapan ng bayan eh lalo pang gagawa ng bagay na magbabaon sa bayan...

    puro kayo reklamo!!!!
  • hubcap wrote: »
    e ano naman ang sasabihin ng gobyerno na dapat nating gawin? may sinabi na ba? so far puro crisis - rice crisis, ngayon naman pang-aapi sa meralco.

    gobyerno? eh di ba ikaw kasama ka pag sinabing gobyerno? si GMA lang ba ang gobyerno?

    libre ba kuryente mo? o artista ka ng EBS-CBN
  • hubcap wrote: »
    e ano naman ang sasabihin ng gobyerno na dapat nating gawin? may sinabi na ba? so far puro crisis - rice crisis, ngayon naman pang-aapi sa meralco.

    Kailangan ba talagang tanungin mo pa sa gobyerno kung ano ang magagawa mo? Anyway, we can doour part by consuming less.
  • Kailangan ba talagang tanungin mo pa sa gobyerno kung ano ang magagawa mo? Anyway, we can doour part by consuming less.

    eto kasi si hubcap eh inaasa lahat sa gobyerno para gumanda ang buhay nya...at sya wala na dapat gawin...

    puro na lang reklamo...
  • lechon xlechon x PEx Influencer ⭐⭐⭐
    kasalanan ni gma kung bakit naghihirap si hubcap :rotflmao:

    kasalanan ni gma kung bakit may hign inflation sa mundo :rotflmao:

    kasalanan ni gma kung bakit ang mahal ng gas :rotflmao:

    kasalanan ni gma kung bakit bagsak ang dolyar :rotflmao:

    :mecry:
    kailangan i-take over ng gobyerno ang mga nagbebenta ng langis para maibaba ang presyo! baka may management inefficiency din dito. o kaya system loss. kilos mga apologist!
    ^good idea hubcap. baka bababa ang langis sa mundo bcuz of your beloved gma :lol: :bop:
  • Kailangan ba talagang tanungin mo pa sa gobyerno kung ano ang magagawa mo? Anyway, we can doour part by consuming less.

    The problem is that while Filipinos are doing their parts in whatever little way they can, you have people like and including GMA who's capable of nullifying the efforts of millions trying to live better lives. Soon, we will be consuming less than those in Sub-Saharan Africa.
  • 'Sinabi na ngang kampon ni Satanas iyang si Gloria, e. Yan ang dahilan kung bakit mataas ng presyo ng krudo, at kung bakit me rice crisis.'

    :lol::lol::lol:
  • pianpian PExer
    hubcap wrote: »
    tulad ng sinubukan gawin ng gobyerno/gsis/garcia sa meralco, hindi ba dapat i-take over din nila ang shell, caltex at petron? ang dahilang ginamit sa sinubok na pag take over sa meralco ay para daw mapa-ibaba ang presyo ng koryente, e di ganon din dito - kailangan i-take over ng gobyerno ang mga nagbebenta ng langis para maibaba ang presyo! baka may management inefficiency din dito. o kaya system loss. kilos mga apologist!

    Hindi kailangang kumilos ang mga apologist at hindi naman kontrolado ni GMA yan o ng iba. Pero ikaw kontrolado mo ang magagawa mo para sa ikauunlad mo. Kaya kumilos ka.
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