September inflation at 2.3 percent
PSA reports September inflation at 2.3%
MANILA – National Statistician Claire Dennis S. Mapa reported today that headline inflation for the month of September this year slowed slightly to 2.3 percent. This has resulted to a 2.5 percent year-to-date average inflation for the whole year.
Undersecretary Mapa said last August 2020, inflation was reported at 2.4 percent compared to 0.9 percent year-on-year.
The reason for the lower inflation rate last month was due to the lull in prices of Food and Non-Alcoholic Beverages. It has also been traced to lower vegetable prices which include eggplant and garlic at 2.7 percent last September from 0.9 percent reduction from August 2020.
There was minimal movement in prices of meat, particularly chicken and pork which posted 2.9 percent inflation last September from 4.0 percent inflation last August this year. Milk, cheese and eggs posted 2.4 percent inflation from 2,9 percent last August and all these contributed to the reduction in prices of food and non-alcoholic beverages.
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) said the 2.3 percent inflation listed last month was within their forecast range of 1.8 – 2.6 percent.
“The latest inflation outturn is consistent with the BSP’s prevailing assessment that inflation is expected to remain benign due largely to the impact on domestic and global economic activity of possible deeper economic disruptions caused by the pandemic,” the BSP statement added.
With the significant monetary policy easing and liquidity-enhancing measures made by the BSO and the implementation of fiscal measures in the Bayanihan 2 Act are expected to provide enough support to economic recovery in the coming months. Accordingly, indications of gradual improvements in Manufacturing and external demand as quarantine protocols are eased both domestically and abroad may also bolster sentiments going forward.
It said the BSP will continue to evaluate the transmission of BSP’s policy actions to the economy along with the recently approved fiscal measures to address the economic costs of the public health crisis.
The BSP commits itself to deploy all needed measures in its toolkit in fulfillment of its policy mandate as it continues to assess the impact of the global health crisis on the domestic economy, the statement concluded. (Melo M. Acuña)