Inflation Rate Slowed to 3.8% in Feb 2019
The Philippine Statistics Authority (PSA) has reported that the rate of increase in the prices of basic goods and services in the country eased in February. This is the fourth straight month that registered slower price hikes.
Based on its inflation report, PSA found that prices of most commodities softened to a rate of price increase at 3.8 percent. The agency attributed this mainly to stabilizing food prices as well as the still weak effect of the second tranche of fuel excise tax increase.
Inflation in the Philippines
The annual growth in headline inflation slowed from 4.4 percent in January and leveled with the increase rate from exactly a year ago.
In the previous month, a downtrend was seen in the indices of most commodity groups excluding education and communication, which registered flat growth.
Inflation in the month of February was mainly prompted by food and non-alcoholic beverages (48.9 percent). This was followed by electricity, water, housing, gas, and other fuels (22.1 percent). Restaurant and miscellaneous goods and services settled at 13.7 percent.
Nevertheless, the index of food and non-alcoholic beverages grew at a slower pace of 4.7 percent in February from 5.6 percent in January.
Meanwhile, the housing, utilities, and gas index also grew at a slower pace of 3.7 percent in February from four percent in January. The index of restaurants and miscellaneous services also eased to four percent from 4.3 percent.
Apart from the National Capital Region (NCR), inflation also slowed in other regions across the country. Cordillera Administrative Region (CAR) recorded the slowest inflation at 2.5 percent.
According to deputy national statistician Josie Perez, the effect of the second tranche of the fuel excise tax increase still could not be felt. This is due to the varying increases in pump prices among competing gas stations. However, Perez said the government will continue monitoring the effect of the increase in fuel excise tax.
