Philippines inflation climbed to three-year-high in 2021

Vegetable deflation plus slower price increases in fish and rice helped bring down the nationwide inflation rate last month. - Bloomberg

MANILA (Philippine Daily Inquirer/Asia News Network): The country ended 2021 with a three-year-high, above-target inflation rate of 4.5 percent, which meant that faster-than-manageable price hikes, especially of food and oil prices, tempered consumer spending at a time it was needed to rev-up economic recovery and address poverty that was aggravated by the prolonged pandemic.

Last year’s average rate of increase in prices of basic commodities was the highest since the 5.2 percent in 2018, when a spike in rice prices eventually led to liberalized trade. Rice tariffication, or allowing more imports in exchange for higher revenue through tariff, hurt local farmers but lowered prices of the staple food.