NEDA sees higher inflation in March

The National Economic and Development Authority (NEDA) is projecting a higher inflation figure of more than 3.4 percent but lower than 4.3 percent for the month of March.

Socio-Economic Planning Secretary and NEDA Director General Felipe M. Medalla likewise projected that the full-year inflation figure could go up to six to seven percent, way above the original projection of two to three percent.

"But the (full-year) average could still be below six percent," Medalla said during a press presentation conducted by the Department of Energy (DOE).

The higher inflation forecast was prompted by the two price increases of petroleum products this year equivalent to P1.22 per liter. As a rule of thumb, a 10-percent increase in oil prices results to a 0.30 percentage point increase in inflation rate.

President Estrada appealed directly to the oil companies twice in the past six months resulting in a reduction by half of the original price increases sought by the companies.

The full impact of the March inflation figures on the economy will only be reflected three to five months later.

Aside from petroleum prices, other factors that will affect the March inflation figure are possible increases in the prices of light, water and several agriculture-based products.

Last month, inflation was registered at three percent, a little higher than the 2.6 percent registered at the start of the year.