Inflation cools further to 0.8% in October 2019

Inflation slowed for the fifth consecutive month to mark a fresh three-year low of 0.8% in October, the Philippine Statistics Authority (PSA) revealed Tuesday.

The latest figure compares with the 0.9% in September, and the 6.7% in October 2018.

October’s inflation rate was the slowest in over three years since April 2016’s 0.7%, bringing the year-to-date inflation to 2.6%.

The slowdown was a result of a decline in prices of food and non-alcoholic beverages, National Statistician Claire Dennis Mapa said.

“The downtrend in the inflation in October 2019 was mainly due to the 0.9% annual drop registered in the heavily-weighted food and non-alcoholic beverages index,” he said.

Slower annual increases were also noted in housing, water, electricity, gas, and other fuels (0.6%); furnishing, household equipment and routine maintenance of the house (2.7%), and health and restaurant and miscellaneous goods and services (2.9%).

“The slowdown of the October 2019 inflation was also brought about by the annual decline in transport index,” Mapa said.

He noted, however, that increases were registered in prices of chicken and beef products, while the cost of pork dropped during the month.

“Sa datos natin, we are seeing an upward trend particularly in the prices of chicken,” he said.

“We are seeing that it will continue because initial data in November still showing upward prices particularly in chicken,” Mapa said.

The Department of Agriculture (DA) confirmed in September the African Swine Fever (ASF) outbreak in the country, and has since ordered several areas quarantined to prevent the disease from spreading further.

“Right now, ‘yung trend natin generally, ‘yung prices ng chicken ay tumataas, ‘yung beef din, pero ‘yung pork pababa,” Mapa said.

On Monday, the DA revealed that longganisa and hotdog products of Pampanga-based food processor Mekeni Food Corp. tested positive for ASF.

The National Capital Region (NCR) registered an inflation rate of 1.3%, higher than the 0.9% in September.

Areas outside the NCR saw inflation decelerate to 0.7% on average—the fastest was in Central Luzon at 2.3%, and the slowest was in Zamboanga at -1.3%.

“The upward movement in the October 2019 inflation in Region III was mainly due to higher annual rate observed in the index of food and non-alcoholic beverages, specifically, meat such as chicken and beef; fish like tilapia, galunggong, and dilis; and egg,” Mapa said.

Twelve regions outside the NCR either had negative or lower annual inflation rates in October, while four regions registered higher annual rates. —KG/VDS, GMA News