TRAIN-induced price increases are permanent—IBON
TRAIN-induced price increases are permanent—IBON
The inflation spike marks the start of increases driven by the Tax Reform for Acceleration and Inclusion (TRAIN) in the prices of basic goods and services for the next three years, research group IBON said. Further inflationary surges are likely to happen in 2019 and 2020 when the next two rounds of additional taxes on oil products take effect. The Duterte administration’s banner TRAIN is among the biggest factors driving the inflation rate to its highest in over six years, said the group.
IBON noted that the headline inflation rate of 4.5% year-on-year in April is the highest since late 2011, bringing the year-to-date average inflation rate to 4.1 percent. This already breaches government’s inflation target for 2018.
As it is, food, vegetable and fuel prices are already palpably higher from a year ago, IBON observed. The price of regular milled rice has increased from Php35 to Php40 per kilo, of galunggong from P140 to Php160, of pork liempo from Php225 to Php240, sitao from Php60 to Php100 per bundle, and red onions from Php50 to Php80. Just since January, the price in Metro Manila of diesel has gone up by over Php7 per liter to Php44.35 and of gasoline by some Php6.80 to Php55.37. LPG is also already much more expensive at some Php650-750 for an 11-kg cylinder.
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