Philippines: Inflation falls to lowest level since May in September
October 6, 2020
Consumer prices rose a seasonally-adjusted 0.08% in September over the previous month, swinging from the 0.16% fall seen in August, and driven for higher prices for clothing and footwear, and health.
Inflation came in at 2.3% in September, which followed August’s 2.4%. September's result represented the lowest inflation rate since May, but remained within the Central Bank’s target range of 2.0%–4.0%. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 2.2% in September (August: 2.1%). Lastly, core inflation ticked up to 3.2% from the previous month's 3.1%.
Mild price pressures provide scope for the Central Bank to continue to adopt a highly accommodative stance to combat the Covid-19 fallout. Indeed, the Central Bank stated it judges risks to the inflation outlook to be skewed to the downside due to possible further Covid-19-induced disruptions to domestic and foreign activity.
Author: Oliver Reynolds, Economist