Philippine Inflation Slows From 2018 High as Food Costs Cool

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The Philippines’ consumer price increases slowed last month from a 2018 high after food and transport costs cooled. 

Inflation eased to 4.8% in September, from 4.9% the previous month, the statistics authority reported Tuesday. That’s slower than the 5.1% median estimate in a Bloomberg survey of 18 analysts, and is at the low-end of the central bank’s 4.8%-5.6% forecast for September. 

Slower increases in food and non-alcoholic beverages as well as transport costs pulled inflation lower, national statistician Dennis Mapa said in a live-streamed briefing. 

Elevated consumer prices may threaten the consumption-driven economy’s recovery just when the government is moving to ease movement restrictions to support businesses. 

Recent price spikes are due to supply issues and are “best addressed by timely non-monetary” measures, Central Bank Governor Benjamin Diokno said after the data. Inflation will settle close to the mid-point of a 2%-4% goal in 2022 and 2023 and price expectations are “firmly” within target, he said. 

The central bank “stands ready to maintain its accommodative monetary policy stance for as long as necessary to support the economy’s sustained recovery to the extent that the inflation outlook would allow,” the governor said.

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