September inflation at 0.9%, lowest since June 2016

October 4, 2019

September inflation grew at 0.9, the lowest since June 2016, the Philippine Statistics Authority (PSA) said Friday. 

This was down from year-ago levels of 6.7 percent and from month-ago tally of 1.7 percent. 

This brings the year-to-date inflation for 2019 to 2.8 percent, below the central bank's 3 percent, 

The central bank said although ''the latest inflation outturn is likewise consistent with the BSP’s prevailing assessment that inflation will continue to decelerate in Q3 2019 and pick up slightly in the remaining months of 2019.''

It said September inflation was ''driven by the continued decline in rice prices and electricity rates, which offset higher prices of petroleum and selected food products. ''

The central bank added that ''recent volatility in global crude oil prices due to geopolitical tensions in the Middle East could generate upward price pressures over the near term.''

'Pulling down inflation was a decline of 0.9 percent in the index of the heavily-weighted food and non-alcoholic beverages, the PSA said.

''The annual change of the transport index decreased further by 0.9 percent in September 2019, it added,.

Lower annual increases were posted in the following commodity groups: clothing and footwear, 2.7 percent; housing, water, electricity, gas, and other fuels, 0.8 percent; communication, 0.2 percent; recreation and culture, 1.4 percent; and restaurant and miscellaneous goods and services, 3  percent.

Inflation of alcoholic beverages and tobacco index moved up further by 14.3 percent in September 2019. 

Inflation in the NCR likewise eased to 0.9 percent but the highest was recorded in Mimaropa, with 2.2 percent. Zamboanga Peninsula recorded the lowest at minus 1.3 percent. DMS