AUGUST 9, 2018-FOOD, FUEL COSTS PUSH UP INFLATION
HIGH PRICES- With inflation rate going up to a high of 5.7 percent in five years, vendors at Paco Market in Manila expect prices of vegetables to rise. Higher food, fuel and transport costs pushed inflation nationwide to 5.7 percent last month, the fastest rise in over five years, the government said on Tuesday. Surging inflation reduced a family’s purchasing power of P10,000 last year to only P9,430 last month. In Metro Manila, prices of basic goods and services rose further to 6.5 percent, up from 5.8 percent in June and 2.9 percent in July last year. Inflation in July nationwide marked the fifth straight month the rate has breached the central bank’s 2-4 percent target for this year and next, leading some analysts to believe policymakers would deliver a rate hike as much as 50 basis points on Thursday. The inflation rate was near the top end of the central bank’s 5.1-5.8 percent estimate for July. Amid rising consumer prices, the country’s economic managers assured the public that the government was moving to temper inflation. They said inflation would taper off toward the end of the year.