September inflation accelerates to 2.7%

MANILA, Philippines (UPDATE) – The pace of increase in the prices of goods and services accelerated in September due to higher prices of food and alcohol.

Inflation in September increased to 2.7% from 2.1% in August, according to data from the National Statistics Office (NSO) released on Friday, October 4.

Year-to-date inflation now stands at 2.8%, well within Bangko Sentral ng Pilipinas’ (BSP) inflation target of 3% to 5% this 2013.

In a statement, Socioeconomic Planning Secretary Arsenio M. Balisacan said the tick in the cost of goods was caused by higher prices of major commodity groups:

• food and non-alcoholic beverages;
• alcoholic beverages and tobacco;
• housing, water, electricity, gas and other fuels; and
• health.

The National Economic Development Authority said higher prices were reported for commercial regular milled, commercial well-milled, and commercial premium rice in Metro Manila.

Prices of vegetables, however, remained subdued despite the weather disturbances that hit northern and central parts of Luzon, the major vegetable-producing areas in the country.

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Cost of  non-food items also recorded a slight increase of 1.8% in September, from 1.2% in the previous month.

For his part, Bangko Sentral ng Pilipinas Governor Amando Tetangco said the benign inflation gives the central bank room to further adjust policy rates, if needed, to address possible effects of “the issues surrounding the US debt ceiling on the financial markets in the short-term and on real economy in the medium-term.” – Rappler.com