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Philippines: Inflation likely climbed this month
MANILA, Philippines — Economists expect inflation to rise in August as the reopening of the economy after the lifting of the stricter modified enhanced community quarantine for Metro Manila and nearby provinces quickened the increase in prices.
Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines, said inflation likely accelerated to a 14-month high of 2.9 percent in August from 2.7 percent in July.
This would be the highest since inflation averaged 3.2 percent in May last year.
“The re-opening of much of the economy after the shift back to modified enhanced community quarantine in August may have played largely to the quickening of price increases,” Asuncion said.
Malacañang placed Metro Manila and nearby provinces under enhanced community quarantine from Aug. 4 to 18 as COVID-19 cases surged to over 200,000 from only 100,000 last Aug. 2.
“Note that gas prices have also increased during the month a number of times as global oil prices notched upticks,” Asuncion said.
Security Bank chief economist Robert Dan Roces said inflation this month likely increased to 2.8 percent as the climb in transport costs provided minimal impact.
Roces said price movements of major items in the food basket varied with the cost of rice going down, while that of vegetables were mixed.
Source: https://www.philstar.com/business/2020/08/31/2038923/inflation-likely-climbed-month