Inflation quickens further to 3.4% in September
The increase in consumer prices quickened to its fastest pace in five months in September owing to higher adjustments in food costs, data from the Philippine Statistics Authority (PSA) showed yesterday.
Based on the report of the PSA, an attached agency of the National Economic and Development Authority, headline inflation was at 3.4 percent last month, higher compared with 3.1 percent the previous month.
The September inflation figure is also higher than the 3.2 percent increase registered in the same month last year.
However, last month’s inflation is within the Bangko Sentral ng Pilipinas’ (BSP) forecast of 2.8 percent to 3.6 percent and slightly higher than median market expectations of 3.2 percent.
Core inflation, which excludes select volatile food and energy prices, also accelerated to 3.3 percent from 3 percent in August.
“We are still positive that inflation for full year 2017 will settle within the government’s target of 2 to 4 percent,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
“However, we still face several risks to inflation such as higher domestic fuel prices, weaker peso, and minimum wage hike that will be effective today in the National Capital Region,” he added.
Food inflation increased slightly to 3.6 percent from the previous month’s 3.5 percent. Faster price increases were recorded for corn, fish, vegetables, cereals, flour, bread, pasta, and oils and fats.
“The accelerated adjustments in food, particularly corn, fish, and vegetables, can be partly traced to the lingering effects of Typhoon Jolina and Tropical Depression Maring, which caused damage to agriculture and fisheries in the Calabarzon region, particularly Quezon province,” Penia said.
Total reported losses from Tropical Depression Maring were estimated to have reached R77 million.
“We must continue to strengthen the resiliency of communities not only to support low-income farmers but also to stabilize prices of agricultural commodities,” Pernia said.
He said that this can be done through programs
on increasing access to technology, improving access of agriculture products to trade partners, and upgrading credit programs to include crop insurance so farmers are able to recover from losses.
“Farm-gate prices of chicken may also take some time to recover, but may pick up in time for the holidays. To ensure that the country is free from the H5 bird flu virus, the government should strictly enforce regular sanitation processes on farms,” Pernia added.
Meanwhile, non-food inflation reached 3.1 percent, its highest since February 2013.
This is due to faster year-onyear price adjustments in housing, water, electricity, gas and other fuels, transport, restaurants, and clothing and footwear.