MANILA – Despite the slower inflation rate in January, consumers could expect commodity prices to rise in the coming months, starting this February, as the second round of increase in fuel excise taxes goes in full swing, think tank IBON Foundation said Tuesday.
Inflation clocked in at 4.4 percent in January, slower than 5.1 percent in December but faster than 4.0 percent in January 2018.
Slower January inflation is a welcome development, but expect commodity prices to jump as the second round of fuel excise tax hike starts to bite, IBON Foundation executive director Sonny Africa said in an interview on GMA News’ “Balitanghali.”
“Ang mga mamimili, itong February mararamdaman na nila kasi hindi naman agad tumatama sa cost of production – pagdala ng pagkain sa palengke or sa irigasyon. So may konting panahon bago maramdaman siya, pero by February or by March sigurado mararamdaman na talaga siya,” Africa said.
The Tax Reform for Acceleration and Inclusion (TRAIN) Act, signed into law by President Rodrigo Duterte in Decmber2017, imposes a second round of increase in fuel excise taxes – bringing the total to P4.50 per liter of diesel and to P9.00 per liter of gasoline.
“Kasi noong Enero inubos muna ang inventories sa mga gasolinahan. So ang initial impact niyan mararamdaman sa February – ang second round effects niyan after February,” Africa said. (GMA News)