Central Visayas inflation slows to 6.6% in October
Inflation for food and non-alcoholic beverages goes down but transport inflation moves at a faster rate of 8.3 percent
The inflation rate in Central Visayas slowed down in October as price adjustments in food eased, but second-round effects started to be felt in the transport sector.
The Philippine Statistics Authority (PSA) on Tuesday, Nov. 6, said the region’s inflation rate slowed down to 6.6 percent in October from seven percent in September.
The regional rate is lower than the national inflation rate of 6.7 percent in October, unchanged from September’s 6.7 percent but faster than the 3.5 percent in October 2017.
Inflation, or the annual increase in prices, for the food and non-alcoholic beverages basket went down to nine percent from 9.5 percent in September.
Transport inflation, however, moved up to 8.3 percent compared to 6.3 percent in September. Jeepney and other public utility vehicle fares form part of the so-called second-round inflation pressures.
Sought for comment, Rey Calooy, president of the Filipino-Cebuano Business Club Inc., said that although prices did not increase further, he expects inflation to remain high during the “ber months.”
“We are even expecting high inflation in November to December with the same figure or even a little bit higher due to the peak season wherein many businesses will fill up their inventories for the upcoming Christmas holiday,” said Calooy.
Small traders have projected that prices would decrease significantly by early next year when prices of fuel go down and government efforts to ease inflation would take effect.
The country’s headline inflation rate of 6.7 percent in October remains the highest in more than nine years since inflation was recorded at 7.2 percent in February 2009.
The Bangko Sentral ng Pilipinas (BSP), in a statement, said the October outturn was consistent with its assessment that inflation had peaked in the third quarter, although it could remain elevated for the rest of the year.
“The start of the harvest season for rice and improved weather conditions have contributed to some downward price pressures on rice prices. In addition, the implementation of non-monetary measures is also expected to result in a deceleration in food prices,” BSP said.
“Moreover, the approval of rice tariffication could lead to an earlier return to within target inflation in 2019 and to approach the midpoint of the target range in 2020,” the central bank added.
The economic team, for its part, said in a joint statement that “the country’s inflation rate is pointing towards a downward path.”
The team is composed of the Department of Finance, National Economic and Development Authority and Department of Budget and Management.
The team said efforts to tame the prices of goods in the previous months have prevented inflation from rising. They said the outcome has motivated them to work closely with all concerned government agencies to implement mitigating measures to ease inflation over the medium- and long-term.
“As always, the economic team is mindful that much attention has to be given to food, which remains to be the major contributor to inflation even as its price decelerates. To hasten the decline in consumer prices, the government must continue enforcing mitigating measures, particularly interventions in the food supply, one of which is rice,” the economic team said.
The team called on the Department of Agriculture to speed up initiatives to distribute seed buffer stocks for rice, corn and other high-value crops in disaster-hit areas in time for the planting season this November to January.
It also called on Congress to pass the “long-overdue” amendments to the Agricultural Tariffication Act, which is expected to reduce rice prices by P2 to as much as P7 per kilo.
Presidential spokesperson Salvador Panelo said it could be considered “good news” that the headline inflation “did not go up.”
Panelo also believes that the latest inflation rate reflects the government’s efforts to temper the rising prices of goods.
“Considering the directives of the President, supplying us with food and other measures undertaken by the Department of Finance, as well as agriculture and trade, I think that contributes,” the Palace official said in a press conference. /
To hasten the decline in consumer prices, the government must continue enforcing mitigating measures, particularly interventions in the food supply, one of which is rice. JOINT STATEMENT OF THE ECONOMIC TEAM