AS prices of food and non-alcoholic beverages continued to increase, the inflation rate accelerated further to a nine-year high of 6.7 percent in September 2018, the Philippine Statistics Authority (PSA) reported.
The figure approximates government expectations for September and higher than the 6.4 percent recorded in August 2018. Year-on-year, it is more than double the 3.0 percent in September 2017.
The food and non-alcoholic beverages index further quickened to 9.7 percent, about thrice the 3.4 percent in September 2017 and slightly higher than the 8.2 percent in August.
Two other commodity baskets were the top contributors to the uptrend: housing, water, electricity, gas; and other fuels; and transport.
Of the 11 commodity groups, eight registered increases.
Other commodity groups that registered increases: alcoholic beverages, 21.8 percent; clothing and footwear, 2.5 percent; furnishing. household equipment and routine maintenance of the house, 3.6 percent; health, 4.1 percent; transport, 8.0 percent; communication, 0.5 percent; and recreation and culture, 3.0 percent.
The PSA said education still recorded a negative annual rate of 3.8 percent while the restaurant and miscellaneous goods, and services also retained the August rate of 4.0 percent.
In reaction, lawmakers at the House of Representatives Friday urged the administration to suspend the implementation of the excise taxes on fuel to address the surging prices of goods.
Magdalo Rep. Gary Alejano said the Duterte administration should stop downplaying the surging inflation rate and stop denying that it is caused by the Tax Reform for Acceleration and Inclusion (Train) law.
“I strongly urge the government to take immediate and serious actions to suppress the rising prices starting with the suspension of excise taxes on fuel. Worries on possible revenue loss could be addressed through more efficient tax collection,” added Alejano.
Bayan Muna Rep. Carlos Isagani Zarate also suggested the repeal of the Train law.
Zarate believes that the inflation will continue to surge amid the increase in demand for goods due to the Christmas season.
"As it is the Philippines' inflation rate will continue to skyrocket unless the Train law is repealed or the excise tax and VAT on oil are scrapped," ended Zarate.
Ifugao Rep. Ted Baguilat, just like the first two lawmakers, also suggested the same.
“I’m suggesting that government suspend the implementation of excise taxes under the Train law and compensate for diminished revenues with greater collection efficiency and serious anti-corruption campaigns in all offices including Malacañang,” he said.
Anakpawis party-list Rep. Ariel Casilao, for his part, pushed for the passage of the P750 national minimum wage bill.
Casilao noted that the National Wages and Productivity Commission statistics showed that the P512 minimum wage for the National Capital Region is only worth P440 when incorporated to the August consumer price indices. (MVI/Keith Calayag/SunStar Philippines)