Philip­pine in­fla­tion slows to record 0.8 per­cent in July, says gov­ern­ment

The China Post - - WORLD BUSINESS -

Philip­pine in­fla­tion slowed to a record low of 0.8 per­cent year-onyear in July on lower elec­tric­ity, petrol and trans­porta­tion costs, the gov­ern­ment said on Wed­nes­day.

The rate of in­fla­tion was within the cen­tral bank’s forecast of 0.5 per­cent to 1.3 per­cent, but marked a steep fall from June’s year-onyear rate of 1.2 per­cent, ac­cord­ing to the Philip­pine Sta­tis­tics Au­thor­ity (PSA).

Petrol, elec­tric­ity and wa­ter prices de­creased by 1.1 per­cent last month while trans­porta­tion prices de­clined 0.5 per­cent. In­fla­tion for food and non-al­co­holic bev­er­ages slowed to 1.3 per­cent, the PSA said.

The fig­ures were re­leased ahead of a cen­tral bank meet­ing on in­ter­est rates next week, with author­i­ties un­der pres­sure to help spur slow­ing eco­nomic growth.

“We will see at our meet­ing next week if there is (a) need for any ad­just­ments to our stance of pol­icy,” cen­tral bank gover­nor Amando Te­tangco said in a state­ment fol­low­ing the re­lease of the in­fla­tion data.

Te­tangco said av­er­age in­fla­tion for the full year would likely fall “close to the lower end” of the bank’s 2.0 per­cent to 4.0 per­cent tar­get.

“We will mon­i­tor de­vel­op­ments, es­pe­cially those from ex­ter­nal sources, that may raise volatil­ity in fi­nan­cial mar­kets or im­pact on in­fla­tion ex­pec­ta­tions,” he said.

The mon­e­tary au­thor­ity has kept its bench­mark overnight bor­row­ing and lend­ing rates at 4.0 per­cent and 6.0 per­cent re­spec­tively since last year.

Year-on-year eco­nomic growth slowed to a three-year low of 5.2 per­cent in the first quar­ter of this year due to lethar­gic gov­ern­ment spend­ing and weak ex­ports.

It was the worst ex­pan­sion for what has re­cently been one of Asia’s fastest-grow­ing economies since the last quar­ter of 2011, when it grew by 3.8 per­cent.

The slow­down also im­per­iled the gov­ern­ment’s 7.0 per­cent to 8.0 per­cent growth tar­get for the year.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.