Inflation cools further in August
Published Sep 5, 2019 12:00 am
By Chino Leyco
The rate of increase in consumer prices fell to its slowest level in almost three-years last month as cheaper food, particularly rice, as well as fuels continue to positively drag-down the costs of commodities in the country, the Philippine Statistics Authority (PSA) reported on Thursday.
Customers buy vegetables at a market in Manila. (Czar Dancel / FILE PHOTO / MANILA BULLETIN)
The country’s headline inflation clocked in at 1.7 percent in August, down from 2.4 percent in the previous month and significantly lower compared with 6.4 percent in the same month last year, the PSA data revealed.
The inflation figure last month, the slowest since August 2016, brought this year’s eight-month average at 3.0 percent, well within the Bangko Sentral ng Pilipinas’ (BSP) target of 2.0 percent to 4.0 percent.
According to the PSA, declining inflation rate was sustained in August due to the slower increase in the index of the heavily-weighted food and non-alcoholic beverages at 0.6 percent.
In particular, deflation, or lower prices, were noted in rice that contracted by -5.2 percent, corn at -3.7 percent, vegetables at -1.4 percent as well as sugar, jam, honey, chocolate and confectionery at -2.9 percent.
Along with food items that registered an average inflation of 0.3 percent, transport index also dropped by 0.2 percent during the month.
These commodity groups, likewise, posted slower inflation rates in August: housing, water, electricity, gas, and other fuels (1.8 percent); health (3.1 percent); recreation and culture (1.8 percent); and restaurant and miscellaneous goods and services (3.2 percent).
On the other hand, higher inflation was noted in the indices of alcoholic beverages and tobacco at 10.1 percent; clothing and footwear, 2.8 percent; and education, 4.6 percent.
Prices of other cereals, flour, cereal preparation, bread, pasta and other bakery products, meanwhile, jumped 3.2 percent, along with meat at 2.5 percent, fish at 2.8 percent, oils and fats at 1.8 percent, and food products—not elsewhere classified—at 6.6 percent.
The inflation indices of milk, cheese, and egg as well as fruits were also higher at 2.7 percent and 7.4 percent, respectively.
Excluding selected food and energy items, core inflation, likewise, eased further to 2.9 percent in August from 3.2 percent in the previous month and 4.8 percent in the same month in 2018.
On the other hand, inflation in Metro Manila continued to move at a slower pace last month at 1.4 percent, down from 2.3 percent in July and 7.0 percent a year before.
The same trend was also observed in areas outside Metro Manila, as their inflation eased further to 1.8 percent last month from 2.4 percent in July and 6.2 percent a year ago.
Customers buy vegetables at a market in Manila. (Czar Dancel / FILE PHOTO / MANILA BULLETIN)
The country’s headline inflation clocked in at 1.7 percent in August, down from 2.4 percent in the previous month and significantly lower compared with 6.4 percent in the same month last year, the PSA data revealed.
The inflation figure last month, the slowest since August 2016, brought this year’s eight-month average at 3.0 percent, well within the Bangko Sentral ng Pilipinas’ (BSP) target of 2.0 percent to 4.0 percent.
According to the PSA, declining inflation rate was sustained in August due to the slower increase in the index of the heavily-weighted food and non-alcoholic beverages at 0.6 percent.
In particular, deflation, or lower prices, were noted in rice that contracted by -5.2 percent, corn at -3.7 percent, vegetables at -1.4 percent as well as sugar, jam, honey, chocolate and confectionery at -2.9 percent.
Along with food items that registered an average inflation of 0.3 percent, transport index also dropped by 0.2 percent during the month.
These commodity groups, likewise, posted slower inflation rates in August: housing, water, electricity, gas, and other fuels (1.8 percent); health (3.1 percent); recreation and culture (1.8 percent); and restaurant and miscellaneous goods and services (3.2 percent).
On the other hand, higher inflation was noted in the indices of alcoholic beverages and tobacco at 10.1 percent; clothing and footwear, 2.8 percent; and education, 4.6 percent.
Prices of other cereals, flour, cereal preparation, bread, pasta and other bakery products, meanwhile, jumped 3.2 percent, along with meat at 2.5 percent, fish at 2.8 percent, oils and fats at 1.8 percent, and food products—not elsewhere classified—at 6.6 percent.
The inflation indices of milk, cheese, and egg as well as fruits were also higher at 2.7 percent and 7.4 percent, respectively.
Excluding selected food and energy items, core inflation, likewise, eased further to 2.9 percent in August from 3.2 percent in the previous month and 4.8 percent in the same month in 2018.
On the other hand, inflation in Metro Manila continued to move at a slower pace last month at 1.4 percent, down from 2.3 percent in July and 7.0 percent a year before.
The same trend was also observed in areas outside Metro Manila, as their inflation eased further to 1.8 percent last month from 2.4 percent in July and 6.2 percent a year ago.