Philippine accumulated a 2.3% inflation in September. The slow growth in food products prices is said to have helped sustain inflation. Meanwhile, transportations fares are still rising higher. Officials aim for a safer number for the rest of the month in 2020.
Food products sustained inflation, while transportation triggered an increase
Quoted from CNN, The Philippine Statistics Authority announced the country suffers 2.3 inflation in September. A mild decrease from 2.4% recorded in August, but still 0.9% higher than the same period a year ago.
National Statistician Dennis Mapa attributes the food products slow growth to suppress inflation. Crops and livestock have contributed at least 1.5%. Additionally, cigarette prices are growing at a slower pace.
The transportation costs, however, triggered the price increase in September. Tricycle fares jumped 45.7% higher compared to last September and contributed around 8.3% surge in inflation. The fare has been in a constant increase since July after the government reopened the operation of public transportation.
In addition, the country’s poorest households are suffering the most from the spike in prices. At least 30% of the country’s lowest-income earners felt 2.8% inflation rate due to the surge in transportation fares. As a result, Philippine recorded a 16.3% rise in transportation expenses for this income group.
Inflation in September grows faster in provinces but remains under control
The provinces experience inflation faster with 2.4% against 2.2% average in Metro Manila. The lowest price spike falls at 0.8%, while the highest price influx comes at 4.5%.
Despite the increasing number, the digit still falls between the central bank’s 2-4% target range. However, it is mildly over the forecasted full-year number of 2.3%. The Bangko Sentral ng Philippinas (BSP) also forecasted around 1.8-2.6% with oil, rice, and electricity being the main contributors in suppressing inflation.
Mapa further added that the average number for inflation is expected to fall around 2.4-2.5% for the remaining months of 2020.