PH inflation eases to 2.4% in July
Credit to Author: ANNA LEAH E. GONZALES| Date: Tue, 06 Aug 2019 17:14:52 +0000
THE Philippines’ headline inflation further decelerated to 2.4 percent in July, its lowest in more than two and a half years, on the back of lower prices of food and non-alcoholic drinks.
In a briefing on Tuesday, the Philippine Statistics Authority (PSA) said last month’s rate was slower than the 2.7 percent recorded in June and the 5.7 percent registered in July 2018.
The latest figure — the lowest since December 2016’s 2.2 percent — falls within the 2.0- to 2.8-percent range earlier projected by the Bangko Sentral ng Pilipinas and the 2.2- to 2.6-percent range forecast of analysts surveyed by The Manila Times on Monday.
National Statistician and Civil Registrar General Claire Dennis S. Mapa called food items and non-alcohol drinks — which recorded a 1.9-percent rate — as the “main driver in the downward trend of inflation in July 2019.”
Food groups that contributed to the downtrend were rice (-2.9 percent in July from -1.7 percent in June); corn (-3.0 percent from -4.0 percent); oils and fats (2.5 percent from 2.9 percent); vegetables (3.4 percent from 9.5 percent); and sugar, jam, honey, chocolate and confectionery (-1.4 percent from 2.2 percent).
“For rice, this is the third month this year that a negative rate has been recorded. [Prices at this month last year] were really high, so we are [really expecting] negative inflation,” Mapa said.
The slower annual increases in housing, water, electricity, oil and transport rates also contributed to the continued slowdown.
Month-on-month, inflation inched up by 0.2 percent in July from 0.1 percent in June.
Higher monthly increases were noted in the indices or alcoholic beverages and tobacco (0.8 percent); clothing and footwear (0.4 percent); furnishings, household equipment and routine house maintenance (0.3 percent); health (0.4 percent); and education (2.1 percent).
Malacañang welcomed the latest inflation data, attributing it to President Rodrigo Duterte’s “strong political will,” and expressed optimism that prices would continue to ease this year.
In a statement on Tuesday, Palace spokesman Salvador Panelo reiterated the government’s commitment to implement macroeconomic policies that would benefit the nation.
“We are confident that disinflation will continue as we remain on guard in monitoring the prices of basic goods and commodities,” he said.
Still on guard
For its part, the National Economic and Development Authority (NEDA) said it expected inflation to settle within the government’s 2.0- to 4.0-percent target this year.
“We welcome this decelerating trend in prices, but we remain on guard against possible upside risks, such as adverse weather conditions, possible entry of African swine fever (ASF), and uncertainty in the global oil market, among others,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (Pagasa) had said it expected the southwest monsoon, or habagat, to peak until September.
It added that a maximum of nine tropical cyclones were expected in the third quarter, while another three to five could enter the Philippines in the fourth.
“Government agencies, such as the Department of Agriculture, Department of Trade and Industry, and the National Food Authority should ensure sufficient supply of basic food commodities in view of the expected tropical cyclones that will enter the” country, Pernia said.
He also said that, as part the government’s continued efforts to prevent the entry of ASF, the Food and Drug Administration suspended imports of pork products from Hong Kong, North Korea and Germany, as well as from 17 other ASF-infected areas.
“The concerned authorities should intensify its market surveillance to ensure the compliance of importers and retailers with the government’s directive. The government should also ensure that there is sufficient production of pork and other meat products locally as the threat of the epidemic is seen to continue in the near term,” Pernia added.
WITH CATHERINE S. VALENTE