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Philippines: Inflation seen steady at 3.3% in Jan
MANILA, Philippines — Inflation likely remained steady at 3.3 percent in January as the drop in housing, utilities, and clothing prices was able to offset the rise in transport rates during the period, the Department of Finance (DOF) said.
In an economic bulletin, the DOF said the inflation rate in January may have remained unchanged from the December 2017 level of 3.3 percent.
This is, however, faster than the 2.7 percent inflation rate registered the same month in 2016.
According to the DOF, price increases of food and non-food items likely remained broadly steady in January.
The agency said the price increases in food and non-alcoholic beverages may have remained unchanged at 3.5 percent in January 2018 from its December level. Inflation of non-food items, meanwhile, was estimated to have been steady at 2.9 percent.
This is despite the possible rise in transport rates, which the DOF described as a lagged response from the fuel rate hike implemented in December last year. The DOF said transportation costs in January may have increased 3.1 percent, faster than the 2.4 percent growth recorded the previous month.
Inflation of alcoholic beverages and tobacco prices likewise rose 6.7 percent from 6.4 percent.
On the other hand, the DOF said there may have been price decreases in housing, utilities and fuels, clothing and footwear and recreation and culture costs during the period, all contributing to temper down the upward pressure from the transport sector.
Based on the economic bulletin, cost of housing, utilities and fuel costs in January may have risen 3.5 percent, slower than the 3.8 percent posted in December 2017.
Electricity rates of the Manila Electric Co., in particular, declined to P8.72 per kilowatt hour from P9.25 per kWH in December.
Meanwhile, diesel prices rose to P39.13 per liter in January from P36.20 per liter the previous month, while cost of gasoline increased to P50.48 per liter from P48.12 per liter.
Prices of clothing and footwear, meanwhile, may have increased 1.6 percent, also lower than 1.8 percent the previous month. Cost increases of recreation and culture also slowed down to 1.4 percent from 1.5 percent.
“Good economic growth maintains stable prices and in turn, provides stimulus for further growth. This virtuous cycle tempers adverse external pressures arising from petroleum and transport inflation,” the DOF said.
Source: http://www.philstar.com/business/2018/01/31/1782905/inflation-seen-steady-3.3-jan