By Leslie D. Venzon
MANILA, Sept. 4 (PNA) — Lower food and energy and oil rates further pulled down Philippine inflation rate to its new lowest level in August, bringing average inflation in the eight months below the government’s target range for the year.
The Philippine Statistics Authority reported Friday that the country’s headline inflation rate tapered down to 0.6 percent in August from 0.8 percent in the previous month.
The August inflation brought the year-to-date headline inflation to 1.7 percent, below the target range of 2.0 to 4.0 percent set by the government for 2015.
Core inflation—which excludes selected volatile food and energy prices—also slid further to 1.6 percent from 1.9 percent in July 2015.
“The current low inflation environment exhibited in the first eight months of 2015 has supported domestic demand, particularly household consumption, and we expect this to persist throughout the rest of the year,” said Economic Planning Secretary Arsenio M. Balisacan.
Meanwhile, headline inflation in the food sub-group continued to ease in August 2015 following slower price adjustments in almost all its sub-items such as breads and cereals, fish and fruits.
Lower electricity rates and oil prices significantly affected price movement of non-food commodities, which was slower at 0.2 percent in August 2015 from 0.4 percent the previous month.
Furthermore, inflation in the National Capital Region was also slower in August 2015 relative to the previous month, while inflation in the other regions of the country remained unchanged.
However, Balisacan noted that there is still an upside risk to inflation from the expected strengthening of the El Niño in the country in the coming months until early 2016.
“We need to reinforce our El Niño preparations to ensure food security. The strong collaboration of the national government, local government units, and the private sector is essential to the success of efforts to mitigate the effects of El Niño,” he said.
The NEDA is now spearheading the government task force on El Niño, and has started drafting the Roadmap to Address the Impact of El Niño (RAIN). (PNA)