Higher food prices push inflation in September
National Economic and Development Authority (NEDA) said faster price adjustments in food caused inflation to accelerate in September.
Based on a report of NEDA-attached agency Philippine Statistics Authority (PSA), headline inflation increased to 3.4 percent in September 2017 from 3.1 percent the previous month.
This is within the Bangko Sentral ng Pilipinas’ forecast of 2.8 to 3.6 percent and is only slightly higher than median market expectations of 3.2 percent.
Core inflation, which excludes select volatile food and energy prices, also accelerated to 3.3 percent from 3 percent in August.
“We are still positive that inflation for full year 2017 will settle within the government’s target of 2 to 4 percent. However, we still face several risks to inflation such as higher domestic fuel prices, weaker peso, and minimum wage hike that will be effective today in the National Capital Region,” said Socioeconomic Planning Secretary Ernesto M. Pernia.
Food inflation increased slightly to 3.6 percent from the previous month’s 3.5 percent. Faster price increases were recorded for corn, fish, vegetables, cereals, flour, bread, pasta, and oils and fats.
“The accelerated adjustments in food, particularly corn, fish, and vegetables, can be partly traced to the lingering effects of Typhoon Jolina and Tropical Depression Maring, which caused damage to agriculture and fisheries in the CALABARZON region, particularly Quezon province,” the Cabinet official said.