Palace frets over high oil prices, inflation rate

Malacañang has admitted it is worried over the effect of a looming combination of high inflation rate of 3.5 percent in January, and continued high world prices of oil. Presidential Communications Development and Strategic Planning Office Secretary Ramon Carandang said the rise in inflation could be felt especially if world oil prices stay above $100 per barrel. “At some point, if oil prices stay above $100 [a barrel], that’s going to be a concern for us in terms of inflation. The BSP is the primary agency dealing with inflation. I’m sure they are working on ways to make sure prices don’t go up so much," he said on government-run dzRB radio. He said the rise in inflation in January was “sharp," especially considering that the inflation rate in December was only three percent. On Friday, the National Statistics Office said the Philippine economy recorded a 3.5 percent hike in inflation, the fastest acceleration since August last year. The NSO said the mounting of prices last month was due to higher rates of food, beverages, cigarettes, fuel, and house utilities. Inflation a year ago was 4.3 percent, government statistics showed. Inflation averaged at 3.8 percent last year, well within the forecast range of 3.5 to 5.5 percent. The BSP had set the annual inflation to average from 3 to 5 percent this year. “Medyo nakakabahala yan in January, 3.5 percent ... Sharp ang pag-akyat ng inflation sa January (It is a cause for concern. The inflation rise from three to 3.5 percent is sharp)," Carandang said. “It’s still within target but the sudden rise in January, we are somewhat concerned," he added. — LBG, GMA News Online