Inflation, the rate of increase in consumer prices, settled for the first time after one year within the Duterte administration’s target range amid declining costs of food and transportation, data from the Philippine Statistics Authority showed yesterday.
The country’s annual inflation rate was seen at 3.8 percent in February this year, sliding further compared to the 4.4 percent in the previous month, and at the same level from 3.8 percent in February 2018.
According to the government’s economic team composed of Finance Secretary Carlos G. Dominguez III, Socio-Economic Planning Secretary Ernesto M. Pernia, and outgoing Budget Secretary Benjamin E. Diokno, price levels have started to normalize and settle back to the government’s target of two percent to four percent.
The February headline rate brought the year-to-date average inflation to 4.1 percent, which is now only 0.1 percentage point above the higher-end of the government’s target.
“We are confident that the successive reforms recently rolled out will sustain this environment and support the growth of the Philippine economy,” the economic managers’ joint statement said.
Except for communication-related expenses, slower price increases in most commodity groups were recorded.
In particular, inflation of food and non-alcoholic beverages eased to 4.7 percent in February from 5.6 percent in January, and slightly lower compared to the 4.8 percent in the same month last year.
Similarly, inflation in Metro Manila decelerated to 3.8 percent last month from 4.6 percent in January and 4.7 percent in February 2018. This is the lowest rate recorded in the last 18 months. All regions likewise exhibited slower overall inflation rates.
Meanwhile, Malacañang yesterday lauded the continued drop in the country’s inflation rate and vowed to remain vigilant in monitoring consumer prices.
“Inflation continues to drop, as we predicted, with the February 2019 figure showing its fourth month of deceleration at 3.8 percent,” presidential spokesman Salvador Panelo said. “The Palace welcomes this positive development
as proof that the macroeconomic policies of the Duterte administration have been effective in addressing soaring prices,” he added. (Chino Leyco and Genalyn Kabiling)