Inflation unchanged in October at 6.7% —PSA

After nine consecutive months of acceleration, inflation remained at a nine-year high of 6.7 percent in October,  the Philippine Statistics Authority (PSA) revealed Tuesday.

In a press conference in Quezon City, National Statistician Lisa Grace Bersales said there were mixed movements recorded in annual growth rates among commodity groups.

Higher annual increases were observed in six commodity groups including housing, water, electricity, gas, and other fuels; furnishing, household equipment and routine maintenance of the house; and health.

There were also higher increases in transport; recreation and culture; and restaurant and miscellaneous goods and services, Bersales said.

Slower annual price increases were recorded in the indices of food and non-alcoholic beverages at 9.4 percent, and alcoholic beverages and tobacco at 21.6 percent.

The latest figure compares with the 6.7 percent registered in September, the fastest in over nine years since inflation clocked in at 7.2 percent in February 2009. It also remains the fastest in over nine years since the 7.2 percent in February 2009.

This, however, is faster than the 3.5 percent recorded in October 2017, which was then the fastest in almost three years since the 3.7 percent in November 2014.

In terms of geographic locations, inflation was recorded at 6.1 percent, slower than the 6.3 percent in September, and faster than the 4.3 percent the same month last year.

 

Fastest in Bicol

Outside Metro Manila, inflation was fastest in the Bicol Region with 9.9 percent, while Central Luzon posted the slowest inflation rate of 4.4 percent during the month.

Bersales also cited inflation in the Cordillera Administrative Region (CAR) at 5.2 percent and the MIMAROPA at 9.0 percent, which were both up from previous figures due to the onslaught of Typhoon Ompong which brought about damage to agriculture amounting to P16.78 billion.

According to Bersales, the latest figure shows a month-on-month slowdown of 0.3 percent, slower than the 0.8 percent in September.

"There seems to be a slowing in increase in prices. This is the slowest [month-on-month] growth since August," she explained.

Data from the PSA shows that the month-on-month growth rate in August was recorded at 0.9 percent, the fastest for the year.

Pressures 'moderating'

In response, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla, Jr. said the latest figures support the view that pressures are now moderating.

"The October inflation data supports the view that inflation pressures are finally moderating. It's a significant deceleration although the headline figure remains elevated. Second round effects are also muted so far," he said in a message to reporters.

"That augurs well for a return to inflation target by 2019. The (Monetary Board) will take into account these and other incoming data including GDP (gross domestic product) at its next policy meeting when it determines if there's still need for further policy rate adjustments," he elaborated. —KBK/VDS, GMA News