PHILIPPINE inflation eased in August on slower food and beverage price movements, according to government data released on Friday.
The consumer price index rose at a slower annual pace of 2.4 percent for the month versus 2.7 percent in July, slightly lower than the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 2.5 to 3.3 percent range.
Core inflation, which strips out volatile food and fuel items, came in at 3.1 percent.
“Ang headline inflation sa bansa ay bumagal ng 2.4 percent sa August 2020…Ang pangunahing dahılan ng pababa ng antas ng inflation ay ang mas mabagal na paggalaw ng presyo ng food and alcoholic beverages,” National Statistician Dennis Mapa said in a virtual press briefing.
The slower increase in prices of fish, meat and vegetables as well as the slower price movements in alcoholic beverages and tobacco are among the major contributors to the downward trend, data showed.
Restaurants and miscellaneous services also contributed to the decline in inflation for the month. “The August inflation of 2.4 percent is lower than the BSP’s assessment but is consistent with the expectation that inflation will remain benign over the policy horizon. The balance of risks tilts toward the downside owing largely to potential disruptions to domestic and global economic activity of the ongoing pandemic,” BSP Gov. Benjamin Diokno said in a statement. (ABS-CBN)
