Inflation slowed down to 2.4% in August

September 4, 2020

Inflation slowed down for the first time in three months as it came in at 2.4 percent in August, the Philippine Statistics Authority (PSA) said Friday.

Inflation in July was 2.7 percent.

"The slowdown in inflation in August 2020 was primarily due to the deceleration in the inflation for the heavily-weighted food and non-alcoholic beverages which slid at an annual rate of 1.8 percent during the period, from 2.4 percent in the previous month,'' said National Statistician Dennis Mapa.

Indices of the following  commodity groups posted lower inflation:

Alcoholic beverages and tobacco, 17.7 percent; Clothing and footwear, 1.9 percent; Furnishing, household equipment and routine maintenance of the house, 3.9 percent; Education, 0.1 percent; and Restaurant and miscellaneous goods and services, 2.3 percent.

The index of recreation and culture showed an annual decline of -0.1 percent during the period, from an annual gain of 1.1 percent in July.

Core inflation, which excludes selected food and energy items, slowed down to 3.1 percent in August, from 3.3 percent in the  previous month.  Core inflation in August 2019 was recorded at 2.9 percent.

For food, the annual rate at the national level eased further to 1.7 percent during the month, from 2.5 percent in July 2020. In August 2019, inflation for food was far lower at 0.3 percent.

Inflation in the National Capital Region (NCR) was posted at 2.2 percent in August 2020. It was the same rate recorded in July 2020, while in August 2019, inflation in the area was at 1.4 percent.

Inflation in areas outside NCR decelerated to 2.5 percent in August 2020. In the previous month, inflation in the area was observed at 2.9 percent, while in the same month in 2019, it was  posted at 1.8 percent. DMS