Inflation up sharply in RP on oil spike

Inflation up sharply in RP on oil spike

MANILA: Inflation in the Philippines jumped sharply in July, rising to an annualized 6.6 percent from 5.4 percent in June on the back of a spike in global oil prices, the government said on Thursday.

The latest inflation figure is estimated under a new system using 2000 as the base year. Under the old, 1994 base-year system, the annualized inflation rate in July would be 6.0 percent.

Economic Planning Secretary Romulo Neri warned that record- high crude oil prices in the world market might force Manila to adjust upward its inflation targets for this year and next.

"The worrisome part here is higher oil prices globally, and that could also have a major impact on the equation (government inflation target) for the rest of the year," he said on ABS-CBN television. -- AFP