PH inflation eased further to 6.1% in Aug

MANILA, Philippines — Inflation eased for the fourth straight month in August to 6.1 percent as slower price increases in food, housing and utilities helped offset elevated transport costs, the Philippine Statistics Authority (PSA) said on Friday. The latest reading was lower than the 6.2 percent recorded in July, bringing the year-to-date average to 5.2 percent. READ: Poll: August inflation seen cooling to 6.1% While August marked the fourth consecutive month of easing since inflation peaked in April, the rate remained well above the Bangko Sentral ng Pilipinas’ 3-percent target, where it has stayed for the past six months. Still, the print fell within the central bank’s projected range of 5.5 percent to 6.5 percent for the month. It was also correctly predicted by all 13 economists polled by the Inquirer last week. Contributing to the downtrend was food inflation, which slowed to 4.6 percent from 5.2 percent in the previous month due to declining prices of vegetables and fish. Rice inflation, however, climbed to a two-year high of 19.4 percent from 17.1 percent. Housing and utility costs likewise helped pull down the overall rate, with its rate easing to 7.9 percent from 8.2 percent. This was driven by electricity inflation slowing to 14.4 percent from 16.9 percent. READ: Aug inflation seen hitting as high as 6.5% This came as Manila Electric Co. reduced power rates in August following two straight hikes, bringing the overall rate down to P14.7833 per kilowatt-hour (kWh) from P14.8261 per kWh. The reduction translated to around P9 in savings for residential customers consuming 200 kWh. Transport inflation, however, resumed its upward trajectory after three months of easing amid renewed tensions in the Middle East that pushed up global oil prices. The transport inflation rate accelerated to 13.5 percent from 11.9 percent. This was mainly driven by faster increases in gasoline prices, which rose by 36.2 percent from 34.1 percent, and diesel prices, which climbed by 55.7 percent from 38.6 percent. Looking ahead, state statisticians warned that inflation could pick up again in the coming months amid continued bad weather. “The disasters have a direct effect. It impacts our food products. Although our vegetables for August posted a negative inflation rate, some items declined but some still rose. Our expectation is that there will likely be a change in movement for September,” National Statistician Claire Dennis Mapa said. Economists at Chinabank likewise pointed to a possible pickup in September due to weather-related risks, volatile oil prices and a weaker peso. “Inflation continued to ease, but we see this as short-lived, with inflation likely to grind higher from September through November on unfavorable base effects and the impact of El Niño, particularly through higher prices and electricity rates,” Chinabank said in its commentary. INQ