o its highest level in 14 years, an official said Friday. Acting Socio-Economic Planning Secretary Augusto Santos said "continuous price increases of cereals and fuel" have raised inflation to 11.4 percent in June from 9.5 percent in May. That's the highest since May 1994, when it hit 11.5 percent.
Santos said the latest figure has brought the average inflation rate for the first six months to 7.6 percent, higher than the government's target of 3 percent to 5 percent for the whole year.
A spokeswoman for President Gloria Macapagal Arroyo said food price increases "may seem to be the order of the day, but the government will not tolerate hoarders and vultures who will prey on our consumers."
The central bank had predicted the double digit inflation. In a statement two days earlier, it also projected inflation to average between 7 percent to 9 percent for the year, above the government's target. It projected inflation to decline to 4 percent to 6 percent in 2009. The National Economic and Development Authority said the prices of cereals -- chiefly rice and corn -- increased by 42.2 percent in June compared with a rise of 31.4 percent in May.
Fuel prices rose 22 percent in June, up from an increase of 18.2 percent in May. Transportation and communication costs climbed 12.4 percent last month after rising 8.6 percent in May. The opening of classes in June also raised expenses for education, providing a significant boost to inflation, the economic planning agency said.
Presidential spokeswoman Lorelei Fajardo said the government is "committed to seek ways to soften the impact of inflation."
"In the meantime, we urge all sectors of society to help in the government's efforts to conserve on fuel. Also, we urge our food manufacturing sector to be sensitive to our consuming public," she said in a statement.
