DOF: Inflation to remain manageable

INFLATION will remain manageable in the coming months despite the acceleration in consumer prices to a three-month high of 3.1 percent (%) from 2.8% a month ago, Finance Undersecretary Gil Beltran said.

The faster inflation was primarily driven by higher increases in the prices of food, transport, water, electricity and fuel. The August print was also faster than the 1.8% a year ago. This brought inflation in the first eight months to 3%, the midpoint of the target range of 2% to 4% for the whole year.

"Inflation rate for August increased to 3.1%, reflecting DOF's internal forecast. The uptick is driven both by food and non-food items. Vegetable prices increased due to recent weather disturbances and fuel price hikes also drove transportation price increases," Beltran said in his Economic Bulletin on Inflation released yesterday.

"Core inflation of 3% indicates that headline inflation for the

few months may be around that neighborhood. Nevertheless, this is still within the monetary target range, giving ample space for maneuver to address both domestic and external disturbances," Beltran said.

DOF data showed that the core inflation of 3% in August 2017 was higher compared to the 2.1% a month ago and 2% a year ago.

Philippine Statistics Authority data showed that the indices of alcoholic beverages and tobacco increased by 6.3%; housing, water, electricity, gas and other fuels (2.8%); transport (4.4%); communication (0.3%); recreation and culture (1.4%); and restaurant and miscellaneous goods and services (2.2%).

The rest of the commodity groups either had slower annual add-ons or retained their previous month’s rates. DOF