While food prices remain high, inflation is expected to have risen 6.4% in September, as has the record high in August at the peak of the past nine years, the Finance Ministry said Friday.
However, DOF Secretary of State and Chief Economist Gil S. Beltran said in an economic bulletin that monthly inflation had fallen to 0.6% in September, after 0.9% in August.
This means that price increases in September were lower than a month ago.
But the rise in food and non-alcoholic beverages prices was 9.3% higher in September than in the previous year, compared to 8.5% in August.
Food and non-alcoholic beverages accounted for the bulk of the overall inflation forecast of 6.8% for September, at 3.7 percentage points.
Last August, food and non-alcoholic beverages accounted for 3.4 percentage points less than the overall rate of inflation.
In terms of year-on-year growth, tobacco prices recorded the largest increase at 29.6%, followed by passenger transport (up 21.3%), vegetables (19.4%), %), fish (12.3%) and non-alcoholic beverages. Beverages (11.9%) and rice (10%).
“Rising food prices are the main driver of inflation, but lower electricity prices have slowed inflationary pressures on non-food products,” Beltran said.
Non-food price increases rose from 4.2% in September to 3.7% in September.
For Beltran, the strong support of Bangko Sentral ng Pilipinas’ (BSP) monetary policy, supported by two consecutive rate hikes of 50 basis points, as well as presidential support for the administrative measures taken by the Economic Development Cluster to remove Non-trade barriers to key food items will moderately moderate food inflation. short term. ”
The rise in interest rates last Thursday was the most aggressive monetary tightening of the BSP since Joseph Estrada’s crisis presidency.
“Policy reforms, including travel pricing and budget support for agricultural productivity programs, will help stop similar episodes of inflation in the future,” said Beltran.