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Philippines: Inflation cools to year-low 3.8% in February 2019
MANILA, Philippines — The rate of increase in the prices of basic goods and services in the country slowed for the fourth straight month in February, registering a year-low 3.8 percent, as prices of most commodities softened, the Philippine Statistics Authority (PSA) reported yesterday.
Based on its inflation report, the agency attributed the slower price hikes largely to stabilizing food prices and the still weak effect of the second tranche of the fuel excise tax increase.
The annual growth in headline inflation last month eased further from 4.4 percent in January and matched its level exactly a year ago.
Month-on-month, headline inflation grew flat at 0.1 percent in February from January.
On a year-to-date, inflation has averaged 4.1 percent – near the government’s target range of two to four percent for the year.
Last month, slowdowns were seen in the indices of most commodity groups, with the exemption of communication and education both of which registered flat growth.
Inflation in February was primarily driven by the food and non-alcoholic beverages (48.9 percent); housing, water, electricity, gas, and other fuels (22.1 percent); as well as restaurant and miscellaneous goods and services (13.7 percent).
The heavily-weighted food and non-alcoholic beverages index grew at a slower pace of 4.7 percent in February from 5.6 percent in January.
Deputy national statistician Josie Perez attributed this to slower prices of rice, corn, meat, milk, cheese, eggs, fruit, and vegetables.
The index for housing, utilities and gas, grew at a slower pace of 3.7 percent in February from four percent in January. The index of restaurants and miscellaneous services also slowed down to four percent from 4.3 percent.
Excluding selected food and energy items, core inflation eased further to 3.9 percent in February 2019 from 4.4 percent in January.
Perez said similar to January, the effect of the second tranche of the fuel excise tax increase still did not have a significant effect because of the varying increases in pump prices among competing gas stations.
Some gasoline stations, she said, were also still selling old stocks on which the fresh round of fuel tax increase cannot be applied.
The transportation index grew at a slower pace of 1.2 percent in February from 2.5 percent in January. Slower growth were seen in the sub-indices for petroleum and fuels for transport equipment, domestic airfare and ship fare.
“Not all gasoline stations have the same rate of increases that’s why consumers gravitate toward those with the slower increase in prices,” said Perez.
“So the second fuel excise tax hike still has no effect also because some of the old stocks are still sold and gas stations have competing prices,” she added.
Consumer prices rose slower across all regions in February.
Inflation in the National Capital Region (NCR) slowed down further to 3.8 percent in February from 4.6 percent in the previous month. Slower annual hikes were seen in all commodity groups except for clothing and footwear.
In Areas Outside NCR (AONCR), the headline rate fell to 3.8 percent in February from 4.4 percent in January.
Among regions, consumer prices rose the fastest in MIMAROPA to 5.3 percent in February from 5.6 percent in January.
Inflation rose slowest in Cordillera Administrative Region (CAR) to 2.5 percent in February from 3.1 percent in January.
Perez said the government continues to monitor the effect of the increase in fuel excise tax and the developing dry spell.
Food prices, she pointed out, would continue to drive inflationary growth in the short-term.
Source: https://www.philstar.com/business/2019/03/06/1898938/inflation-cools-year-low-38-february-2019#RWPOYovcQMqqD790.99