Philippine recorded a 2.4% inflation in August. Though not significant, the number is still lower than last July’s record of 2.7%. The number reflects a mild increase in the prices of basic necessities and fuels.
Philippine: Inflation in August is still under control
CNN Philippine reported an easing 2.4% inflation in August. The inflation in Metro Manila recorded a slower digit at 2.2%, while the regions recorded 2.5%. Subsequently, 30% of the impoverished households are more affected by the increasing prices. The number of the inflation rate for the cluster reached 2.7%. The first eight months of Philippine’s inflation accumulated is 2.5%. According to Manila Standard, the number is still within the government’s prediction for 2020 ranging from 2% to 4%.
How the inflation managed to go lower
Based on The Philippine Statistics Authority’s report on Friday, prices household necessities are starting to come back to normal. National Statistician Dennis Mapa also attributed the slowly recovering food price to the easing inflation number. He further elaborated that in particular, the price for livestock products and crops are starting getting “modest” along with restaurant meals. Mildly increasing food prices are said to balance inflation.
Meanwhile, transport costs are still not getting any lower. CNN Philippine quoted that the fares for tricycle inclined for about 37.4% year-on-year. Ferry and ships even recorded a rise for about a third. Jeepney fares also reportedly climbed around 2.6%. Though fuel prices showed an incline, lower electricity rates and stronger Peso seem to have affected the inflation.
ING Bank senior Economist, Nicholas Antonio Mapa Economic mentioned another factor causing inflation is the weakening consumption demand. As the coronavirus pandemic is dragging the country into an economic recession, demands for consumption have also gradually decreased. This, however, is refuted by economic managers. Instead, they are expecting a gradual sustained recovery in the future.