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Inflation eases amid lower food prices

The rate of increase in consumer prices slowed last month due to lower costs of heavily-weighted food and non-alcoholic beverages, the Philippine Statistics Authority (PSA) announced today.

Headline inflation eased to 2.4 percent in August this year from 2.7 percent in the previous month, but higher compared with 1.7 percent in the same period last year.

The August inflation rate brought the country’s first-eight month average to 2.5 percent, well within the government’s target range of 2.0 percent to 4.0 percent.

“The slowdown in inflation in August 2020 was primarily due to the deceleration in the inflation for the heavily-weighted food and non-alcoholic beverages which slid at an annual rate of 1.8 percent during the period, from 2.4 percent in the previous month,” PSA said.

Similarly, other commodity groups have also posted lower inflation during the month.

Alcoholic beverages and tobacco, 17.7 percent; clothing and footwear, 1.9 percent; furnishing, household equipment and routine maintenance of the house, 3.9 percent; education, 0.1 percent; and restaurant and miscellaneous goods and services, 2.3 percent.

On the other hand, inflation for housing, water, electricity, gas, and other fuels slighlty went up by 0.9 percent, from 0.8 percent in the previous month.

Retaining their previous month’s annual growth rates were health (2.8 percent), transport (6.3 percent), and communication (0.3 percent).

Core inflation, which excludes selected food and energy items, also slowed down to 3.1 percent in August from 3.3 percent in the previous month and 2.9 percent a year ago.

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