Metro Manila, Philippines – The four-month downward decline in prices of goods and services posted a reversal in September, according to official data released on Tuesday, Oct. 7, driven mainly by the cost of rice and non-alcoholic beverages.
The Philippine Statistics Authority said headline inflation rate, which includes volatile items like food and energy, rose to 7.2 percent in September, a point higher month-on-month, but a big jump from 1.7 percent in the same period last year.
Meanwhile, the year-to-date average inflation rate was at 5.4 percent.
In a press conference, National Statistician Claire Dennis Mapa said rice among other heavily-weighted food items, as well as non-alcoholic beverages were the inflation drivers, while rising costs of housing, water, electricity, gas and other fuels were the secondary contributors.
Transport was also a driver because of higher fuel prices.
“Of course hindi ito magandang balita,” Mapa said when asked about the possible impact of the overall inflation rate on the ordinary family, now bracing for a possible Super El Niño episode next year.
[Translation: Of course, this is not good news.]
“Yung food inflation natin actually ay nasa 6.8% percent for all income households. Mas mataas ito para doon sa bottom 30 percent income households,” he added.
[Our food inflation is actually at 6.8 percent for all income households. This is higher for the bottom 30 percent income households.]
Mapa said the numbers show higher inflation in 16 of the 18 regions nationwide.
On whether a 7 percent inflation rate will be the new normal, Mapa said, “While we hope that it will go down, what we are seeing is that there are a lot of risks in terms of the items.”
