Inflation hits poor Filipinos hardest, report shows

MANILA, Philippines — Consumer prices for the poorest 30 percent of households in the country rose to a five-year high of eight percent in August, the Philippine Statistics Authority (PSA) reported yesterday.

Inflation for the income segment grew faster during the month compared with 7.3 percent in July and three percent in August 2017. This was way above the headline inflation rate of 6.4 percent during the month.

The PSA said that with the exception of the index for fuel, light and water, the indices of all the commodity groups posted higher annual rates during the month.

Growth in the heavily weighted food index grew faster at 7.8 percent in August versus 6.9 percent in the previous month and three percent in the same month in 2017.

This was because of faster increases in the prices of all food groups, except corn, which registered a slower price increase during the month.

Inflation hit harder for the country’s poorest households in Metro Manila as seen in the 8.3 percent growth in August compared with 7.6 percent in July and 4.7 percent in August 2017.

The bulk of the burden was the steep increase in the prices of food, beverages and tobacco, the index for which grew 8.1 percent in August.

In the food index alone, a growth of 7.3 percent was seen compared with 6.1 percent in the previous month and 4.7 percent in August 2017.

Faster increases were also seen in clothing (1.8 percent) and services (2.2 percent).

The index of housing and repairs registered slower annual gains in August.

In areas outside Metro Manila, consumer prices grew eight percent in August from 7.3 percent in July and three percent in August 2017.

Price increases were seen across all commodity groups, with the exception of fuel, light and water.

The fastest rise in consumer prices was seen in the Cagayan Valley region, which registered an inflation rate of 11 percent for the poorest households.

The slowest growth was seen in Central Visayas at 5.3 percent.

The food index alone grew 7.8 percent in areas outside of Metro Manila, faster compared with the growth of 6.9 percent in July 2018 and 2.9 percent in August 2017.

With the exception of the index for corn, those of the other food groups recorded higher upticks in August.