The country’s headline inflation remained at 6.7% in October 2018 as mixed movements were posted by commodity groups, according to the Philippine Statistics Authority (PSA).
The October 2018 rate was the same as September 2018’s, and higher than estimates of economic managers. Budget Secretary Benjamin Diokno last month said the administration believes inflation has peaked in the third quarter of the year and is on its way down with the fourth quarter rate to be less at 6.3%. The Department of Finance estimated that inflation for October will ease at 6.5%, citing the stabilizing of food prices.
The Bangko Sentral ng Pilipinas earlier forecast October inflation to be between 6.2% and 7%.
PSA said higher annual increases were observed in the indices of the following commodity groups: housing, water, electricity, gas, and other fuels, 4.8%; furnishing, household equipment and routine maintenance of the house, 3.7%; health, 4.3%; transport, 8.8%; recreation and culture, 3.1%; and restaurant and miscellaneous goods and services, 4.2%.
PSA, however, said slowdowns in the annual increments were seen in the indices of food and non-alcoholic beverages at 9.4% and alcoholic beverages and tobacco at 21.6%.
In the National Capital Region, inflation further slowed to 6.1% in October 2018 from 6.3% in the previous month. Outside NCR, inflation remained at 6.8%.
BSP governor Nestor Espenilla in a statement said the October inflation data “supports the economic managers’ claims of rise in prices finally tapering off.”
“It’s a significant deceleration although the headline figure remains elevated. Second round effects are also muted so far. That augurs well for a return to inflation target by 2019,” he added.
Espenilla said the Monetary Board “will take into account these and other incoming data including GDP (gross domestic product) at its next policy meeting when it determines if there’s still need for further policy rate adjustments.”
