Inflation slows to 0.8% in October
Credit to Author: Anna Leah E. Gonzales| Date: Tue, 05 Nov 2019 16:35:20 +0000
THE country’s inflation eased further to 0.8 percent in October — the lowest in more than three years — on the back of lower prices of food and non-alcoholic beverages, the Philippine Statistics Authority (PSA) announced on Tuesday.
Last month’s figure is lower than the 0.9 percent recorded in September and in May 2016, and the 6.7 percent posted in October 2018. It also falls within the 0.8-to-0.9-percent range projected by analysts polled by The Manila Times.
“The downtrend in inflation in October 2019 was primarily due to the annual drop in the index of the heavily weighted food and non-alcoholic beverages,” National Statistician and Civil Registrar General Claire Dennis S. Mapa said in a briefing in Quezon City.
Contributors were the annual decreases in rice (-9.7 percent from -8.9 percent); corn (-3.9 percent from -4.1 percent); vegetables (-0.8 percent from -4.7 percent); and sugar, jam, honey, chocolate and confectionery (-4.3 percent from -4.1 percent).
“Rice is still negative. This is the sixth month that we have negative inflation for rice,” Mapa said.
Also contributing to decelerating consumer price growth were the decline in the indices of transport, housing, water, electricity, gas and other fuels.
Mapa noted, however, that inflation in the National Capital Region (NCR) accelerated to 1.3 percent in October from 0.9 percent in September.
“The uptrend in the October 2019 inflation in [the] NCR was brought about by [the] higher annual increment in the index of food and non-alcoholic beverages. Faster annual increases were noted in meat, specifically chicken; fruits, such as apple, watermelon and mango; and vegetables, particularly ampalaya leaves, garlic and onion,” he said.
Outside Metro Manila, Region 3 (Central Luzon) posted the highest inflation rate last month at 2.3 percent, compared with September’s 2.1 percent.
“The two regions that were seen to have higher prices, particularly food [are the NCR and Region 3],” Mapa said, noting that both are “affected by the African [swine fever] (ASF).”
‘Good news’
Malacañang welcomed the latest inflation data, with Palace Spokesman Salvador Panelo calling it “good news to all Filipinos.”
“Bringing a comfortable life for all Filipinos, which includes taming inflation, is the foremost socioeconomic goal of the Duterte administration. This positive development is a testament that [the President’s] strong political will, together with his economic team’s sound and working macroeconomic policies and measures, contributed to the downward trend of prices and goods,” he said.
Presidential Communications Secretary Martin Andanar echoed Panelo’s statement, describing the latest figure as “an accomplishment reflective of the commendable macroeconomic policies and political will being adopted and employed by the Duterte administration.”
“This inflation slowdown will greatly benefit the Filipino consumers. With the continuity in the employment of Dutertenomics, anchored on the 10-point agenda, we anticipate a stable inflation rate over the medium term. This will have a favorable environment in boosting the Philippines’ economic performance,” he said.
In a separate statement, the National Economic and Development Authority (NEDA) said the government would continue to watch out for upside risks to inflation, such as ASF cases, which have been observed in Quezon City, and the provinces of Rizal, Pangasinan, Bulacan, Nueva Ecija, Pampanga and Cavite.
“The livestock industry in the said ASF-stricken areas, which accounts for 21.7 percent of the country’s total hog production last year, remains at high risk. The government and private companies must collaborate to manage, contain and control the spread of the disease,” NEDA Officer-in-Charge and Undersecretary for Regional Development Adoracion M. Navarro said.
According to her, NEDA expects full-year inflation to settle within the government’s target of 2.0 to 4.0 percent.
“The government has been driven and focused in its anti-inflationary efforts this year. We hope to further keep inflation manageable and within the government’s target,” the NEDA official said.