April inflation rate 8.5 percent

**Juan Tamad** · May 5th, 2005 02:11 PM

MANILA (AFP) - Soaring oil prices pushed consumer prices up 8.5 percent from a year earlier in April, the same rate as for the first four months of the year, officials said Thursday.

Responding to the figures, deputy central bank governor Amando Tetangco said the monetary authorities were unlikely to change interest rates at a meeting later in the day as the increase was caused mostly by supply-side factors.

The central bank had estimated the April inflation rate at 8.1-8.6 percent.

"Higher prices of selected food items such as rice, bread, flour, noodles, milk and milk products, meat, cooking oil and sugar were recorded during the month," the national statistics office said in a statement.

"Price hikes in gasoline, diesel, engine and lubricating oil and increased charges for electricity and water in selected regions also contributed to the upward movement."

The April outcome represented an increase of 0.6 percent from March, when there was a 0.3 percent uptick. For the four months to April, inflation averaged 8.5 perent, the same rate as for the headline figure in the month.

The central bank last month raised its full-year inflation rate forecast to 7.0-7.3 percent due to rising oil prices from its previous target of 6.7-6.9 percent.

Tetangco said there was still no evidence of demand-side pressures on consumer prices as of April, a statement that analysts said boosted market expectations that the central bank will leave its key overnight interest rates unchanged after the monthly policy-setting meeting later in the day.

The central bank's overnight rates currently stand at 7.00 percent for borrowing and 9.25 percent for lending.

It raised rates last month for the first time in nearly five years to curb rising inflation but Tetangco said earlier this week the central bank did not see the need for further policy tightening in response to the US Federal Reserve's latest 25 basis-point rate increase on Tuesday.

"Core inflation shows some deceleration. Overall, supply side factors are still mainly behind the rise in prices," Tetangco told reporters.

Core inflation, which excludes volatile factors such as selected fuel and food items, stood at 7.8 percent in April, or 0.2 percentage points below the March figure of 8.0 percent.

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Parang daya itong inflation rate na sinasabi ng government.. Almost all the goods ay tumaas na.. Wala pa yan kapag approve na yun VAT!!! Help us GOD!!! Saan kaya pupulutin ang Pinas!!!!

**2004lynxghia** · May 5th, 2005 05:53 PM

mag-abroad na ang pede maka-abroad..!..earn in US dollars and you'll always be like an inflated dinghy boat on top of a raging rapids of our country's woobly, lackaidasical economic ineptitudes..:seeth:

**empy** · May 6th, 2005 11:38 AM

yikes, 8.5%?? that's brutal....that means that if you got no pay raise or a pay raise lower than 8.5% this year, you actually got a pay cut this year because your peso can buy that much less.

things that make you go hmmm...

**caloyski5** · May 6th, 2005 11:40 AM

ugggh. hard hit negosyo ko..

**Field Master** · May 6th, 2005 11:46 AM

Employees need at least 8.5% pay increase to maintain their current lifestyle (purchase power). Kung nadadagdagan pa expenses mo (additional kids, new car to maintain, etc etc), you need more than that figures. Employers are reluctant to give this pay increase due to bad economy and business, so there's no way to go.

**theveed** · May 6th, 2005 11:48 AM

Interestingly, Bank savings interest is only at 2%, so deduct the tax and the inflation, you're actually losing money if you're saving in the bank hehe.

**ILuvDetailing** · May 6th, 2005 12:02 PM

Sa dami ng taxes na sinisingil, how many % goes to actual use?

**1D4LV** · May 6th, 2005 12:07 PM

Originally Posted by theveed

Interestingly, Bank savings interest is only at 2%, so deduct the tax and the inflation, you're actually losing money if you're saving in the bank hehe.

hehehe. technically correct.
imho, parang mataas ngayon ah. normally, the government only declares inflation at an average of 5%.

langya, increase ko is 7% lang ah. which also technically means, parang wala akong increase. parang may utang pa ako sa company. hehehehe.

**Psylocke** · May 6th, 2005 12:14 PM

8.5% ba? Gagamitin ko yan pang-justify ng 10% increase sa mga tenants ko :D

**mikaztro** · May 6th, 2005 03:09 PM

Theveed is right! 8.5% Inflation rate means it is much higher than the present interest rates of the banks today meaning you lose money when you put it in the bank. Better to try a Business venture or invest in bonds where the rates are much higher. Peso value is declining faster than the speed of light.