January price spikes not as broad, DOF says
Prices have gone up significantly for unhealthy items.
The Department of Finance (DOF) allayed fears arising from the four percent inflation rate in January 2018.
While it accepted that the Tax Reform for Acceleration and Inclusion (TRAIN) law is largely behind the price spike, the agency clarified that not all basic goods were affected.
“It should be noted that a significant portion of January’s inflation rate is contributed to by tobacco and alcoholic beverages and sugar-sweetened beverages,” DOF chief economist and Undersecretary Gil Beltran said.
“Of the 4% inflation, 2.1 percentage points was accounted for by sin products and sugar-sweetened beverages,” he added.
Tobacco and alcohol prices also went up by four percent under the annual increase provided under the sin tax law of 2012, separate from higher excise taxes under TRAIN.