PHL consumer prices post steady rise in October

(Updated 8:40 p.m.) Consumer prices in the Philippines generally increased in October, while lingering within all-time low levels on the back of tamed price movements in select food and energy items.

At 0.4 percent the headline inflation was unchanged from September, albeit slower than the 4.3 percent a year earlier, figures released by the Philippine Statistics Authority (PSA) on Thursday show. 

Alcoholic beverages and tobacco, clothing and footwear, health and transport posted higher annual rates of price increases. But these were partly offset by the slowdown in food and non-alcoholic beverages and declines in gas and other fuels. 

Food prices remained generally stable due to steep declines in bread and cereal, rice and corn according to the National Economic and Development Authority (NEDA).

"These offset the slight price increase in some food items such as meat and vegetables on account of the damage caused by Typhoon Lando," Socioeconomic Planning Secretary Arsenio Balisacan said in a statement Wednesday.

Excluding select food and energy items, inflation accelerated to 1.5 percent in October from 1.4 percent in September. The figures, however, remained below the 3.2 percent in the comparable period last year.

"This indicates that price adjustments across a broad range of consumer items are relatively stable," Balisacan said.

Inflation in the National Capital Region increased to 0.2 percent from 0.1 in September due to faster annual increments in the indices of food and non-alcoholic beverages and transport.

Inflation in other regions also rose at a faster rate of 0.5 percent on higher annual growths in alcoholic beverages and tobacco, health and restaurant and miscellaneous goods and services. This compares with 0.4 percent in September.

'Bottoming out'

Year-to-date, headline inflation slid to 1.4 percent from 4.3 percent while the core inflation slowed to 2.0 percent from 3.2 percent. These reflect the all-time lows registered in the past months.

The October reading is within the 0.1 percent to 0.9 percent forecast range of the Bangko Sentral ng Pilipinas (BSP). The year-to-date figure, however, falls below the central bank's 2 percent to 4 percent target.

"Our current runs show inflation is possibly bottoming out and will gradually move to within target range for 2016 and 2017," BSP Governor Amando Tetangco Jr. told reporters in a text message.

The possible adverse effects of the El Niño phenomenon and pending requests for utilities continue to pose risks to the inflation outlook.