The inflation rate slowed slightly to 2.3% in September

The inflation rate in September slowed to a four-month low of 2.3 percent from 2.4 percent in August, dragged down by slower increases in the prices of food and non-alcoholic beverages despite the lingering impact. of the COVID-19 pandemic, the Philippine Statistics Authority. he said Tuesday. The rate brought average inflation in the first nine months to 2.5 percent, within the target range of 2 to 4 percent set by the government. However, the September data was faster than the 0.9 percent rise in consumer prices a year ago. Bangko Sentral ng Pilipinas Governor Benjamin Diokno said September inflation fell within the regulator’s forecast range of 1.8 percent to 2.6 percent for the month. “The most recent inflation outcome is consistent with the prevailing BSP assessment that inflation is expected to remain benign over the policy horizon with the balance of risks sloping downward due in large part to the impact on economic activity. national and global of possible deeper economic disturbances caused by the pandemic, “Diokno said in a message to journalists. “However, the significant monetary policy easing and liquidity improvement measures undertaken by the BSP and the timely implementation of fiscal measures in the Bayanihan Act 2 provide sufficient support for the economic recovery in the coming months,” he said. . Diokno said signs of gradual improvements in manufacturing and external demand as quarantine protocols are further relaxed here and abroad could bolster consumer sentiments.

“The BSP will continue to assess the transmission of the BSP’s political actions to the economy in conjunction with the recently approved fiscal measures to address the economic costs of the public health crisis. The BSP is ready to implement all the measures available in its toolbox in fulfillment of its political mandate while continuing to assess the impact of the global health crisis on the national economy, ”said Diokno. ING Bank Manila senior economist Nicholas Mapa said anemic demand during the pandemic and the appreciation of the peso, currently one of the strongest currencies in the region, helped limit price increases in September. “The peso continues to outperform its Asian peers, posting a 4.78 percent gain so far this year, which has helped limit imported inflation for most of the year. With the economy in recession, consumer demand remains anemic as unemployment remains high at around 10 percent from the first half of the year, ”said Mapa. Mapa said the BSP might not react with a policy adjustment anytime soon. He said inflation would likely stabilize at 2.4 percent in 2020 and help preserve the purchasing power of Philippine consumers given the economic recession. The PSA said heavily weighted food and non-alcoholic beverage indices fell at an annual rate of 1.5 percent in September, compared with 1.8 percent in August. Slower increases were also observed in the prices of alcoholic beverages and tobacco, clothing and footwear and furniture, household goods and routine house maintenance.