Poorest households get reprieve from price acceleration

MANILA, Philippines — Growth in consumer prices for the country’s poorest households decelerated to five percent in February from a peak of 9.5 percent in September to October last year due to the slower growth in food prices, the Philippine Statistics Authority (PSA) reported.

Inflation for the bottom 30 percent income households continued to ease during the month from 5.9 percent in January and 5.4 percent in February 2018. Year-to-date, inflation for this income class registered at 5.4 percent.

This tracks the slowing down of headline inflation to a 12-month low of 3.8 percent in February from 4.4 percent in January and slowing down to the same rate in February 2018.

The deceleration of the consumer prices index (CPI) for the poorest households was primarily attributed to the slowdown in the heavily weighted food, beverages, and tobacco index to 5.6 percent in February.

Annual increments were also slower in the indices of clothing; housing and repairs; as well as fuel, light and water.

Growth in the food index alone eased further to five percent in February from 5.8 percent in January and 5.3 percent in February 2018.

PSA said all food groups registered slower annual price gains in February 2019, with the index of corn still registering negative growth.

Slowdown in inflation for the poorest households was most pronounced in the National Capital Region (NCR) where the CPI registered a growth of 2.9 percent in February from four percent in January and 5.7 percent in February 2018.

This was attributable to slower growth in the food, beverage and tobacco index as well as the index for fuel, light and water.

The annual uptick in the food index alone was also slower at two percent in February from 3.2 percent in January and 5.1 percent in February 2018.

Declines were seen in the prices of rice, corn, as well as fruits and vegetables. Slower annual gains were seen in the indices of fish and miscellaneous foodstuff.

In areas outside NCR, inflation for the poorest households grew slower at five percent in February from 5.9 percent in January and 5.4 percent in February 2018.

PSA said slower annual growth was seen in the indices of all commodity groups except for services.

Slower growth was particularly seen in the food index in February at 5.1 percent from 5.8 percent in January and 5.3 percent in February 2018. Except for corn and fish, all food groups registered slower price gains.

All regions saw slower annual inflation for the income subgroup except in Autonomous Region in Muslim Mindanao, which registered a higher annual rate of 2.8 percent in February 2019.

The lowest inflation rate of 2.1 percent was seen in Region 10 (Northern Mindanao), while the highest annual rate of 11.4 percent remained in MIMAROPA.