Inflation in the Philippines decreased to 0.9% as prices of rice drops further in September. However, these stats are not as low as the national economic team have hoped for.
The Philippine Statistics Authority (PSA) has announced Friday October 4th that the latest figure of 0.9% is lower than the previous which is 1.7% last August.
The Philippines has a year-to-date inflation rate of 2.8% compared to last year’s 5.21%. Also inside the central bank’s target for the year which is 2%-4%.
According to Reuters, the previous month’s inflation figure has been the slowest in the country for more than three years.
The forecasted percentage is actually 1.1% and the country’s central bank had forecasted 0.6% to 1.4%.
The yearly rate has decreased because of lower electricity and food costs, giving Bangko Sentral ng Pilipinas (Central Bank of the Philippines) some room to ease the monetary policy.
Accordingly, prices of rice decreased for the fifth straight month in September by 8.9% amidst the entry of cheap rice coming from abroad, declared by National Statistician, Dennis Mapa.
“Declining inflation trend would provide increased flexibility in terms of greater leeway for any furthering easing of local monetary policy,” Michael Ricafort, an economist at Rizal Commercial Banking Corporation (RCBC) said.
Benjamin Diokno, the Governor of Bangko Sentral ng Pilipinas, has remaind confident that this years growth would reach 6%, in a 6-7% forecast, but continued that “it might just miss the mark.”