Tax reform fires up inflation to 4% in January
Prices have shot up largely due to the tax reform law to hit a three-year peak.
Commodity prices rose by 4 percent in January 2018, the Philippine Statistics Authority (PSA) reported on Tuesday, Feb. 6. This surged from a 3.3 percent reading in December, and is the fastest since October 2014.
Alcoholic drinks and cigarettes saw the biggest jump in costs last month at 12.3 percent, largely due to the impact of higher sin taxes and additional excise taxes.
“The implementation of Tax Reform for Acceleration and Inclusion (TRAIN) Law this month raised prices of cigarettes and alcoholic beverages in most of the regions. Meals eaten outside the home and some items for personal care also went up in many regions,” the PSA said, noting that rising world crude prices also contributed to higher rates.
The cost of food and non-alcoholic drinks likewise increased by 4.5 percent in January, followed by restaurant and miscellaneous goods (3.7 percent) and transport (3.2 percent).