PH inflation rate seen to slow down in Dec 2017

MANILA -- The Department of Finance (DOF) projects another deceleration in the rate of price increases in the Philippines for December 2017 as macroeconomic fundamentals continue to remain strong.

In its economic bulletin, the Finance department forecasts December 2017 inflation at 3.2 percent (%), slower than the 3.3% in the previous month “on the back of more stable food prices and lower power costs.”

It explained that “low inflation is an indication that the country’s macroeconomic fundamentals remain strong.”

“Solid fundamentals backed by Train (Tax Reform for Acceleration and Inclusion) 1 implementation, rice sector reform and the Build, build, build policy will push the country’s growth to seven to eight percent this year and sustain manageable inflation,” it said.

As of end-November last year, inflation averaged at 3.2%, within the government’s 2% to 4% target for 2017-19.

Last November, inflation went down to 3.3% after peaking for the year at 3.5% last October.

In its economic bulletin, the Finance department sees inflation of food and non-alcoholic beverages and of rice to remain flat at 3.2% and 1%, respectively, last December from the previous month’s level.

However, an uptick is seen for the alcoholic beverages and tobacco to 6.2% from monthago’s 6.1%.

Inflation of non-food items is generally projected to slow down to 2.8% in the last month of 2017 from 3.3% last November.