Prices of basic food staples steady - NSO

The low three percent inflation for the month of February translates to stable prices of basic food staples, the National Statistics Office (NSO) reported yesterday.

The inflation rate was better than earlier expectations that it could climb to 3.6 percent in February. Although the February inflation rate is slightly higher than the 2.6 percent rate in January, the price of food dropped by 0.6 percent.

While Socio-Economic Planning Secretary Felipe Medalla has predicted the inflation rate for March to be anywhere between 3.4 percent and 4.3 percent because of the higher fuel prices exacted by the Organization of Petroleum Exporting Countries (OPEC), price control measures instituted by the Estrada administration are expected to keep food prices stable.

"Prices of selected food items such as rice, fruits and vegetables sugar and cooking oil were lower (compared to their prices a year ago), "the NSO report said.

For instance, the price of rice, which accounts for a 12 percent weight in the consumer price index basket, has not practically moved since last October. This was attributed to the price ceiling measures of the government. Regular milled rice sells for P12 a kilo at the National Food Authority, well milled rice for P14 a kilo and premium rice, P18 a kilo.

Medalla said that the government inflation rate target of 6-7 percent is "doable," barring outside pressures, like typhoons, which could put pressure on food prices.