The Bangko Sentral ng Pilipinas (BSP) Department of Economic Research projects September 2019 inflation to settle within the 0.6-1.4% range, BSP reported.
Moreover, the decline of inflation in August was attributed by the decreasing prices of rice and electricity amid the higher prices of fuel and other food items. The inflation last month was recorded as the lowest rate for three years.
Previous report regarding the inflation of August emphasized the effect of rice tariffication law (See report here: Inflation in August is Down to 1.7%, Lowest in 3 Years ).
“The continued decline in rice prices and the downward adjustment in electricity rates could be offset by the recent uptick in fuel prices as well as higher prices of selected food items due to weather disturbances during the month,” Business World report stated.
Respectively, inflation in September will be announced by October 4, 2019 by the Philippine Statistics Authority (PSA). The projected inflation for next month will be recorded as the fourth straight month of inflation slowdown.
The average inflation for the first eight months of the year is three percent, which is against the forecast of BSP’s downward-adjusted 2.5% forecast average for the entire 2019.
“The BSP has slashed benchmark interest rates by a total of 75 basis points so far this year — with the latest 25 bp cut adopted on Thursday last week — in the face of fast-easing inflation. But it still only partially dials back last year’s 175 bp cumulative hike,” report mentioned.