Increasing inflation in the Philippines steadied at the rate of 6.7 percent in October 2018, reported by the Philippine Statistics Authority (PSA) tuesday afternoon. Despite of the unchanged rate, the inflation is still a problem in the Philippines.
The levying rates of inflation in the Philippines for the past months, is the fastest pace recorded in a decade. It is the first time that the consistent increase of prices remains steady.
Commodities that are affected by inflation
According to the report of Philstar, “high fuel prices, costlier utilities and surging transport costs offset gains from slower price spikes recorded in food items, which accounted for 55.4 percent of the headline inflation for October.”
Water, electricity, gas, and other fuels; furnishing, household equipment and routine maintenance of the house and health, are the six groups of commodity which were determined to rise prices annually.
Inflation in other regions
In the National Capital Region (NCR), inflation rate slower at 6.1 percent relatively to its September inflation rate of 6.3 percent. On the other, the fastest soaring inflation rate among the regions is Bicol, with 9.9 percent from 10.1 percent in September.
Actions to take
The 0.3 percent increase of the latest inflation is the slowest month-to-month recorded growth since August. Subsequently,Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla said inflation data for October show “price pressures are finally moderating.”
“The Monetary Board will take into account these and other incoming data including GDP (gross domestic product) at its next policy meeting when it determines if there’s still need for further policy rate adjustments,” he added.
The BSP’s action to the increasing inflation was its 1.5 percent increase adjustment of interest rate. This was considered the strongest action of inflation since 2000.
Reactions from researches
According to the report of Australia and New Zealand (ANZ), they foresee that the inflation will hit by 7 percent by the remaining months in 2018 ( refer to Inflation will hit above 7%). However, they posited that the inflation of the Philippines reached the peak and more responsive policies should be imposed to manage the inflation rate.