August inflation hits 7-month high

MANILA, Philippines – Increases in the prices of goods and services pushed inflation to a seven-month high in August, the National Statistic Office (NSO) reported yesterday.

The government statistics office said that inflation advanced to 3.8 percent in August from 3.2 percent in July and 4.6 percent a year ago. The latest figure was the highest since the four percent inflation recorded in January.

Consequently, the average inflation for the eight month period slightly quickened to 3.2 percent from 3.1 percent the previous month.

The official monthly figure hit the upper-end of the Bangko Sentral ng Pilipinas’ 2.9 to 3.8 percent forecast for August. Nevertheless, the eight-month tally still comfortably fell within the BSP’s three to five-percent target for the year.

“As we had expected, inflation would creep higher on higher commodity prices, including prices for household equipment and repairs and transport,” BSP Governor Amando Tetangco Jr. said in a text message to reporters.

“This uptick would however not cause any breaches in the full-year average target ranges over the policy horizon,” he added.

Torrential rains and flood battered Metro Manila and parts of Luzon early last month, causing billions of damage to infrastructure, agriculture and livelihood. BSP has said it expected such damage would result into tighter food supply and hence higher prices.

NSO said prices of food and alcoholic beverages increased 3.3 percent in August, much faster than July’s 2.3 percent. There was also a steeper rise in prices— to 5.6 percent from five percent— in the group of water, electricity, gas and other fuels, data showed.