Food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport are the top contributors to the overall inflation, the PSA said.
STAR/Michael Varcas
Inflation soars to new 9-year high of 6.7% in September
(philstar.com) - October 5, 2018 - 9:12am

MANILA, Philippines (Updated 9:50 a.m.) — The country's headline inflation further quickened to 6.7 percent in September, the Philippine Statistics Authority announced Friday.

The September inflation was higher than the 6.4 percent in August, a new nine-year high.

This is slightly lower than the Bangko Sentral's 6.8 percent forecast and higher than the 6.4 percent forecast of the Department of Finance.

Food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport are the top contributors to the overall inflation, the PSA said.

The food and non-alcoholic beverages index grew to 9.7 percent in September while transport was at 8 percent. 

Other commodity groups also registered increases — alcoholic beverages and tobacco (21.8 percent), clothing and footwear (2.5 percent), furnishing, household equipment and routine maintenance of the house (3.6 percent), health (4.1 percent), communication (0.5 percent) and recreation and culture (3 percent).

'Ompong' contributed to Bicol inflation

PSA also said inflation in the National Capital Region was slower at 6.3 percent in September, and higher outside the capital at 6.7 percent. The highest inflation in the regions was 10.1 percent in Bicol and lowest in Central Luzon at 4.5 percent.

National Statistician Lisa Bersales said Typhoon Ompong (international name Mangkhut) has specifically contributed to the increase of prices of commodities in the Bicol region.

Bersales noted that data is collected in the first five days and the middle of the month, which means that aftermath of the typhoon might have already been reflected on the September inflation.

Ompong ravaged northern Luzon on September 15, damaging almost P27 billion worth of rice, corn, high value crops, fisheries and livestock in the country. — Patricia Lourdes Viray

INFLATION
As It Happens
LATEST UPDATE: October 19, 2018 - 10:18am

The growth of prices of goods and services peaked at 6.7 percent in August this year—the highest inflation rate in nine years.

Metro Manila also suffered from staggering 7-percent inflation last month, forcing Filipino consumers to tighten belts even further.

Inflation has continuously climbed for eight straight months since January this year as President Rodrigo Duterte signed the TRAIN law, or the Tax Reform for Acceleration and Inclusion.

The Philippines' inflation rate is the highest in Southeast Asia. The inflation rate breached economic managers' earlier hoped-for ceiling of 4 percent.

October 19, 2018 - 10:18am

Bangko Sentral ng Pilipinas announces that Q3 inflation rose to 6.2 percent from the previous quarter's 4.8 percent.

October 5, 2018 - 10:43am

The government's economic team says in a statement that it understands that many Filipinos, "particularly those who toil so hard just to keep up", have been feeling the effects of faster inflation. 

"We assure everyone that we are working swiftly to temper the rise in the prices of goods and offer relief to those most affected. We remain committed to our goal of ensuring price stability, along with our overarching aim of translating sustained broad-based economic growth to comfortable lives for everyone," the team — the National Economic and Development Authority, Department of Finance, and Department of Budget and Management — say.

The agencies note in a joint statement that non-food inflation has slowed down to 4.0 percent in September from 4.1 percent and that inflation in the National Capital Region was at 6.3 percent in September against 7.0 percent in August.

"These clear signs of easing boost our confidence that inflation will taper off by year-end and go back to our target range by early next year. But we must couple this optimism with quick and focused actions in order to sustain gains made so far in keeping inflation in check," they say.

October 5, 2018 - 9:11am

Inflation in September was at 6.7 percent, the Philippine Statistics Authority says, up from 6.4 percent in August 2018.

PSA says inflation in the National Capital Region was slower at 6.3 percent in September, and higher outside the capital at 6.7 percent. The highest inflation in the regions was 10.1 percent in Bicol and lowest in Central Luzon at 4.5 percent.

Inflation for housing, water, electricity, gas and other fuels moved slower in September, it also says.

September 5, 2018 - 5:29pm

Government economic managers list planned reforms following the announcement of the 6.4-percent inflation rate for August.

In a statement, the economic planning, finance, budget and management, trade and industry, agriculture and justice departments along with the central bank, treasury bureau and members of the National Food Authority enumerate the planned reforms:

  • Fish — Replicate issuance of certificates of necessity to allow imports to be distributed to wet markets.
  • Rice — 4.6 million sacks of rice with the NFA to be released immediately. Previously contracted 2 million sacks to be distributed before end of month. Moreover, 5 million sacks will be imported for the next month and a half. Senate urged to pass Rice Tariffication Bill this month.
  • Police, investigators along with DTI and NFA to monitor rice delivery from ports to NFA warehouses and retail outlets.
  • Chicken — Enable producers to sell directly to end customer with agriculture department providing cold storage.
  • Sugar — Open importation of sugar in order to "moderate" prices.
  • Vegetables — No action; attributed to seasonal weather conditions.
September 5, 2018 - 1:52pm

A demonstration is being staged in front of the Senate building in Pasay by group National Food Coalition to urge lawmakers to take action in the continued rise of the price of goods.

Budget Secretary Benjamin Diokno, meanwhile, claims that the inflation rate of 6.4 is still "manageable" despite going beyond government-estimated ceiling.

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