THE DEPARTMENT of Finance (DoF) expects inflation to have peaked at 4.1% in March from 3.9% in February due to upticks in prices of tobacco and non-alcoholic drinks.
“The month-on-month price change which slowed down to 0.24% on average from 0.79% last month and 0.88% in January comes largely from tobacco which rose 8.27%, non-alcoholic beverages which rose 2.51% and electricity, gas and fuels which rose 1.66% over the previous month,” the DoF said in its latest economic bulletin published on Wednesday, April 4.
If realized, this would be the fastest rate of increase since 4.2% recorded in August 2014.
Using the old 2006 base prices, the DoF said that inflation for March likely stood at 5%.
The Tax Reform for Acceleration and Inclusion (TRAIN) law, enacted as Republic Act No. 10963, imposed additional taxes on cigarettes, sugar-sweetened beverages, cars, coal, minerals, sugar-sweetened drinks, among others. — Elijah Joseph C. Tubayan