Inflation rose 6.7 percent in September, ninth straight month of increase

October 5, 2018

The Philippines’ annual headline inflation rose for the ninth straight month at 6.7 percent in September, the Philippine Statistics Authority ( PSA) said Friday. Inflation in the previous month was pegged at 6.4 percent and in September 2017, three percent. "This is slightly lower than the median market expectation of 6.8 percent and within the 6.3 to 7.1 percent forecast of the Bangko Sentral ng Pilipinas", a joint statement by the country's economic managers said. The uptrend was primarily brought about by the heavily-weighted food and non-alcoholic beverages index which further accelerated to 9.7 percent. From annual rates in the previous month, annual increases were also higher in the indices of commodity groups, especially alcoholic beverages and tobacco, 21.8 percent On the other hand, the annual mark-up in housing, water, electricity, gas and other fuels index decelerated to 4.6 percent, while the indices of education and restaurant and miscellaneous goods and services retained their previous month’s annual rates. Excluding selected food and energy items, core inflation slowed down to 4.7 percent. In the previous month, core inflation was posted at 4.8 percent and in September 2017, 2.7 percent. The annual rate of the food alone index climbed by 9.7 percent. Its annual growth in the previous month was noted at 8.2 percent and in September 2017, 3.4 percent "These clear signs of easing boost our confidence that inflation will taper off by year-end and go back to our target range by early next year. But we must couple this optimism with quick and focused actions in order to sustain gains made so far in keeping inflation in check", the economic managers statement said.  DMS