Inflation goes down to 4.4% in September

MANILA, Philippines – The country’s inflation rate went down to 4.4 percent in September from 4.9 percent in August.

“Moderate food inflation, lower electricity charges and the roll-back in global and local petroleum prices contributed to the slower overall inflation in this period,” Natinal Economic and Development Authority (NEDA) Officer-in-Charge and Deputy Director-General Emmanuel Esguerra, said.

Hikes in food prices decreased from 8.3 percent last month to 7.4 percent in September. The decline of Dubai crude oil’s international price pulled local petroleum prices down.

The Manila Electric Company’s generation charge rose by 0.4 percent in September which was lower than the almost 12 percent annual increase the previous month, Esguerra said.

The Development Budget Coordination Committee (DBCC) has an inflation target of 3 to 5 percent for 2014 and September’s rate is within the target range.

Esguerra noted that the inflation slowdown appears to be geographically broad-based as he mentioned the National Capital Region’s (NCR) rate which went down from 4.4 percent in August to 3.5 percent in September.

Slower price increases were also recorded in 13 regions outside NCR which recorded an overall inflation of 4.7 percent in September from the previous month’s 5 percent.

“Notwithstanding upward pressures on prices, the general market inflation expectations remain well-anchored, as policies remain supportive of manageable inflation rate,” Esguerra said.

NEDA expects that the country’s inflation rate for 2014 would be within DBCC’s target. –Patricia Lourdes Viray (philstar.com)