Food inflation remains stubborn
Tuesday, August 22, 2023 | 670 Views |
Higher and higher: The cost of living remains at elevated levels despite the drop in general inflation PIC: MORERI SEJAKGOMO
Annual inflation dropped to a 35-month low in July at 1.5 percent, from 4.6 percent in June, due mainly to the base effects of higher fuel prices in July last year and the June 20 reduction of pump prices this year.
However, annual food inflation was measured at 10.7% in July, down from 12.9% in June, indicating that prices remain elevated and their decline is far slower than other items measured by the Consumer Price Index.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...