April 29, 2003 - The April inflation is expected between 2.7%
to 3.0% from 2.9% in March. Consumer prices could have been
brought down by the abundance of fruits this summer, the low
lenten demand for meat products, a stable rice buffer stock
and the launching of pan de sal baked from local flour.
The US$2.64/barrel drop in the average Dubai crude benchmark
from February to March drove pump prices down, by P0.20/liter
for gasoline and by P0.30/ liter for diesel last 17 April.
Also, oil companies cut LPG prices twice by a total of P22
per 11 kg cylinder, reflecting the drop in international prices.
On the other hand, the ongoing mild dryspell could have raised
the prices of fish and other food crops. Rising seasonal demand
also brought up prices of beverages and construction materials.
The sub index for medical services could have also gone up
as consumers bought more vitamins to strengthen the body's
immune system against the SARS virus. Drugs and medicines
comprise a mere 1.2% of the consumer price index.
Utility charges could have remained higher since lower currency
rate adjustments from this month's appreciation of the average
peso-dollar exchange rate will impact on consumer bills the
following month. Moreover, electricity consumption is expected
to have gone up because of the extreme summer heat.
Meanwhile, consumers yet to feel the impact of the 10% value-added
tax on professional services and financial transactions.
