More imports, tariff cuts to temper inflation – NEDA

The government’s decision to reduce tariffs and import more pork are expected to temper the continued rise in consumer prices.

The National Economic and Development Authority said inflation may start easing this month as the temporary reduction in tariffs and increase in the minimum access volume for pork imports may start yielding positive effects.

This after headline inflation – the rate of increase in the consumer price index – remained at 4.5% in May.

While the overall inflation was unchanged, pork inflation still climbed to 58.4% in May from 57.7% a month earlier as prices remain high due to tight supply in the local market.

Meat inflation remained the main driver of the headline rate with a 1.4-percentage point contribution.

The lower prices of rice, vegetables, fruits and corn also offset the increments in pork prices. Rice inflation further decelerated to 0.8%. Vegetables and fruits also recorded a slower price uptick.

Source: https://www.philstar.com/business/2021/06/06/2103363/more-imports-tariff-cuts-temper-inflation-neda

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