Philippines: Inflation still elevated in October but steady at 6.7%

• Nov 06, 2018

MANILA, Philippines — Inflation continued to be a problem in the Philippines in October, although it steadied from the previous month’s level amid mixed price movements posted by commodity groups, the country’s statistics agency reported.

Inflation clocked in at 6.7 percent in October, unchanged from September’s level and the fastest pace in nearly a decade. Year-to-date, inflation averaged 5.1 percent, well above the government’s 2-4 percent target band.

The latest inflation print fell within the Bangko Sentral ng Pilipinas’ 6.2-7 percent forecast range for the month, but higher than the Department of Finance’s 6.5 percent estimate.

Slowdowns in the annual increments were seen in the indices of food and non-alcoholic beverages at 9.4 percent and alcoholic beverages and tobacco at 21.6 percent.

Following the release of October inflation data, the Philippine Stock Exchange index, a barometer of investor confidence, opened a tad higher while the local currency slightly strengthened against the US dollar.

In a statement, BSP Governor Nestor Espenilla, Jr. said there is a “significant deceleration” even as headline inflation remained elevated last month.

“The Monetary Board will take into account these and other incoming data including GDP (gross domestic product) at its next policy meeting when it determines if there’s still need for further policy rate adjustments,” Espenilla said. — Ian Nicolas Cigaral

Source: https://www.philstar.com/business/2018/11/06/1866332/inflation-still-elevated-october-steady-67#SyX6ukKay1z1uTy9.99