Inflation hits 3.5%, a three-year high

November 7, 2017

Inflation accelerated to a three-year of 3.5 percent in October, the Philippine Statistics Authority (PSA) said Tuesday.

In September, the inflation rate was logged at 3.4 percent. On a year-ago basis, inflation was 2.3 percent.

The last time inflation was this high at in November 2014 when it was 3.7 percent.

Indices of the following commodity groups recorded higher annual increases during the month:

• alcoholic beverages and tobacco (6.8 percent);
• housing, water, electricity, gas and other fuels (4 percent) ;
• communication (0.4 percent);
• recreation and culture (1.5 percent); and
• restaurant and miscellaneous goods and services (2.6 percent).

Excluding selected food and energy items, core inflation slowed down to 3.2 percent in October 2017. It was registered at 3.3 percent in the previous month and 2.3 percent in October 2016.

The annual increase of the food alone index was higher at 3.8 percent in October 2017. In the previous month, its annual mark-up was 3.7 percent and in October 2016,  3.5 percent.

Faster annual increments were seen in the indices of corn at 3.4 percent; meat, 4.6 percent; and vegetables, 4.6 percent.

Inflation in NCR picked up by 4.9 percent in October. In the previous month, inflation in the area was 4.7 percent and in October 2016, 2.1 percent, the Philippine Statistics Authority said.

The annual gain in housing, water, electricity, gas an other fuels index was higher at 4.6 percent; communication index, one percent; recreation and culture index, 3.1 percent; and restaurant and miscellaneous goods and services index, 6.1 percent. DMS