Philippines’ inflation eases to 2.7pc | 2019-07-07

Philippines’ inflation eases to 2.7pc

7 July, 2019 12:00 AM printer

MANILA: The Philippines’ headline inflation eased to its slowest pace in 22 months in June, declining to 2.7 percent mainly due to continuing softer price adjustments in some commodity groups, especially food and non-alcoholic beverages, the Philippine Statistics Authority (PSA) said on Friday.

“This is the lowest inflation recorded since September 2017,” the PSA said. It said inflation in May 2019 was higher at 3.2 percent and in June 2018, at 5.2 percent, reports Xinhua.

“The slowdown of inflation in June 2019 was mainly driven by slower annual rate posted in the index of the heavily-weighted food and non-alcoholic beverages at 2.7 percent,” the PSA added.

Indeed, the department of finance said the streamlining of food supply continues to drive down food inflation. Lower petroleum prices in the previous month also helped tame non-food inflation, it added.

The National Economic and Development Authority, for its part, said this outturn brought year-to-date inflation to 3.4 percent, which remained within the government’s full-year 2019 inflation target range of 2.0 to 4.0 percent.

The Bangko Sentral ng Pilipinas (BSP) said the latest inflation outturn continues to support its assessment of a manageable inflation outlook over the policy horizon, with average inflation expected to settle within the government’s target range of 3.0 percent plus or minus 1.0 percentage point for 2019 and 2020.

Looking ahead, the BSP said it will remain watchful of evolving price trends to ensure that the monetary policy stance remains consistent with the BSP’s price stability objective while being supportive of economic growth.

Meanwhile, the Philippine share prices rallied to their best performance in five months as investors cheered June’s slower inflation print.

The bellwether PSEi gained 53.02 points or 0.66 percent to 8,117.94 at the closing bell, the highest since Feb. 1, 2019, when the index closed at 8,144.16.