Philippines: DOF sees inflation easing to 6.5% in Oct 18

  • In his latest economic bulletin, Finance Undersecretary and chief economist Gil Beltran said inflation likely slowed to 6.5% in Oct 18 due to declining prices of rice and other food items.
  • This falls within the 6.2% – 7% inflation forecast range issued by the Bangko Sentral ng Pilipinas. Month-on-month, Beltran said inflation in Oct 18 may have likewise decelerated to 0.05% from 0.8% in Sep 18, with prices hardly moving from the September level.
  • According to Beltran, the supply of rice has begun to normalize in Oct 18 with the start of the rice harvest season and the arrival of rice imported by the National Food Authority and the private sector.
  • He said the vegetable industry has also partly recovered from Oct 18’s severe weather disturbances. “Other administrative streamlining measures signed by President Duterte to boost food supply are underway,” he said.
  • Beltran said the month-on-month decrease in electricity rates also helped temper the rise in fuel prices in oct 18. Domestic pump prices of diesel and gasoline peaked in Oct 18 as Iran sanctions threatened to push up the price of oil in the world market.

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