Philippine gov't calls for curb in inflation rate rise

Philippine Presidential Palace ordered Tuesday all concerned agencies to make sure that inflation rate would not keep rising after posting 4.1 percent in December last year, the highest in two years.

Presidential Communications Operations Office Secretary Herminio Coloma Jr. told a news briefing that the Departments of Trade and Industry, Agriculture and other state agencies "will do everything to ensure that inflation rate won't continue to go up."

He said these departments would study if there was insufficient supply, either in terms of raw materials or in the factor cost, like in transportation and communications.

Coloma said the government is working to bring back to normal range the inflation and the price movement in calamity-stricken areas.

The National Statistics Office (NSO) press release Tuesday showed inflation rate in December increased to its highest level in two years as a result of devastation of typhoon Haiyan and power price increase. In Eastern Visayas, the worst-hit area by typhoon Haiyan, or Yolanda, vegetable price went up by 11.3 percent in December from 5.8 percent in November.

But Coloma said the 4.1-percent-rise in inflation rate last month was still within the government's official annual target of 3 percent to 5 percent.

The December inflation rate brought the full year average of 2013 to 3 percent, the government's low-end target.