National Statistician Claire Dennis Mapa. (File photo courtesy of UP.EDU.PH)
MANILA -- The National Economic and Development Authority (NEDA) expects inflation to settle within the government’s target of 2 to 4 percent this year after hitting another low, but remains on the lookout for potential price pressures.
The Philippine Statistics Authority (PSA) reported Tuesday that the country’s headline inflation eased to a 31-month low of 2.4 percent in July 2019, bringing the year-to-date inflation to 3.3 percent.
The average inflation for 2018 reached 5.2 percent.
“Our expectation is, it will continue to slow down or at least stabilize in this number in the coming months,” PSA Undersecretary and National Statistician Claire Dennis Mapa said in a press briefing Tuesday.
Last month’s lower inflation was mainly attributed to slower price increases in heavily-weighted food and non-alcoholic beverages; and housing, water, electricity, gas and other fuels.
Rice deflation was observed for the third consecutive month, reaching -2.9 percent in July 2019 owing to a year-on-year drop. Rice prices last declined in June 2016 and accelerated last year amid supply constraints.
“We welcome this decelerating trend in prices but we remain on guard against possible upside risks such as adverse weather conditions, possible entry of the African swine fever, and uncertainty in the global oil market, among others,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement.
The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) expects the Southwest monsoon or Habagat to peak in the period July to September 2019.
Moreover, the agency said six to nine tropical cyclones are expected in the third quarter, while another three to five tropical cyclones could enter the Philippine Area of Responsibility (PAR) in the last quarter of 2019.
“Government agencies such as Department of Agriculture, Department of Trade and Industry, and the National Food Authority should ensure sufficient supply of basic food commodities, in view of the expected tropical cyclones that will enter the PAR,” he said.
Meanwhile, as part of the government’s continued efforts to prevent the entry of African swine fever (ASF) into the country, the Food and Drug Administration temporarily banned the importation of pork meat products from Hong Kong, North Korea, and Germany, alongside 17 other ASF-infected areas.
“The concerned authorities should intensify its market surveillance to ensure the compliance of importers and retailers with the government’s directive. The government should also ensure that there is sufficient production of pork and other meat products locally as the threat of the epidemic is seen to continue in the near term,” Pernia added.
Meanwhile, the PSA also reported that the index of clothing and footwear, and education accelerated last month.
The rest of the commodity groups retained their previous month’s annual rates.
Inflation in the National Capital Region (NCR) declined to 2.3 percent in July 2019 from 3 percent the previous month.
That in areas outside NCR also decelerated to 2.4 percent from 2.6 percent.
The highest annual rate among the regions in areas outside NCR remained in MIMAROPA (Mindoro, Marinduque, Romblon and Palawan) at 4.9 percent in July 2019 from 5.2 percent the previous month.
“One particular reason we are seeing is because MIMAROPA consists mainly of island provinces so transportation may have an impact on goods and services. This could be validated on the ground. So perhaps the reason why we are reporting MIMAROPA is so that LGUs (local government units) can check and do something about this inflation,” Mapa added. (PNA)
