The Philippine Statistic Authority (PSA) reported that the inflation for the month of September continued to slow down at 2.3 percent from 2.4 percent last August amid low demand in prime commodities.
The easing off of inflation rate has been attributed to the slow movement in prices of food and non-alcoholic beverages, including some vegetables, garlic, chicken, pork, and eggs.
The Department of Agriculture (DA) assured that there will be no drastic movement in the food index, given the ample supply of food.
Meanwhile, increase was recorded in transportation at 8.3 percent. National Statistician Dennis Mapa said it is possible for the transport index to rise until the end of the year.
The Bangko Sentral ng Pilipinas (BSP) cited the inflation for September was within its target forecast range of 1.8 percent to 2.6 percent.
“The latest result is consistent with BSP’s assessment that inflation is expected to remain benign over the policy horizon with the balance of risks tilting toward the downside due largely to the impact on domestic and global economic activity of possible deeper economic disruptions caused by the coronavirus pandemic,” the BSP explained.
The BSP believes that the timely implementation of Bayanihan 2 will support economic recovery in the coming months in line with the loosening of quarantine restrictions. – Report from Naomi Tiburcio
