Philippine Statistic Authority (PSA) revealed that the Philippines’ inflation rate in August eases to 1.7%, the lowest in October 2016 (1.8%).
“The slowdown of inflation in August 2019 was mainly due to the slower annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 0.6 percent,” PSA reported.
Also, these are the following commodity groups which have slower annual rates in August : Housing, water, electricity, gas, and other fuels(1.8%);Health (3.1%); Recreation and culture (1.8%); and Restaurant and miscellaneous goods and services (3.2%).
Based on the report,transport index also posted a 0.2 percent decreased.
Interestingly, food index continues to slow down to 0.3 percent. Meanwhile, rice declines to -5.2 percent. Rice tariffication impacted the lowering of rice per kilo.
Further, corn decrease to -3.7 percent; vegetables, -1.4 percent; sugar, jam, honey, chocolate and confectionery, -2.9 percent; other cereals, flour, cereal preparation, bread, pasta and other bakery products, 3.2%; meat, 2.5%; fish, 2.8%; oils and fats, 1.8%; and food products, not elsewhere classified, 6.6%.
“The latest inflation outturn is consistent with the Bangko Sentral ng Pilipinas’ prevailing assessment that it will continue to decelerate in the third quarter of 2019 and picky up slightly in the fourth quarter.” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said in the report in Inquirer.
Moreover, since the inflation in August slows down, expectations are rising that the central bank will also cut the interest rates to help in boosting the economic growth.
Regional Inflation in August
“Respectively, inflation in NCR continued to move at a slower pace during the month at 1.4 percent. Its annual rate was higher at 2.3 percent in July 2019 and 7.0 percent in August 2018,” PSA reported.
On the other hand, Region IX (Zamboanga Peninsula) recorded the lowest inflation rate while MIMAROPA posted the highest inflation at 4.6 percent