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October inflation hits 5-month high of 1.6%

By Ronnel Domingo
Philippine Daily Inquirer
First Posted 22:02:00 11/05/2009

Filed Under: Disasters (general), Economy and Business and Finance, inflation

MANILA, Philippines--Consumer prices rose 1.6 percent year-on-year in October, the fastest in five months as the devastation caused by recent storms pushed the cost of rice, fruits, vegetables and meat higher in most regions in the country.

Still, documents from the National Statistics Office showed that last month’s inflation rate was just over a tenth of the 11.2 percent recorded in the same period in 2008.

This put the average inflation in the 10 months to October at 3.2 percent, which acting Economic Planning Secretary Augusto B. Santos said was “still within the [inter-agency] Development Budget Coordination Committee’s forecast of 2.5 percent to 4.5 percent.”

Of the six categories making up the consumer price index, only the heavily weighted food, beverage and tobacco group showed a faster rate of increase at 3.7 percent from 2.2 percent in September.

Slower price increases were seen in clothing and miscellaneous items, both easing to 2 percent from 2.1 percent.

The increase in prices of housing and repairs remained at 2.1 percent as in September.

Meantime, prices of fuel, light and water fell faster at 3.6 percent last month from 3.4 percent in September, while those of services slid slower at 2.2 percent from 3.1 percent.

The NSO said that for food alone, the yearly inflation rate inched up to 3.8 percent in October from 2.1 percent in September.

Rice prices inched up by 0.8 percent, swinging from a decline of 1.9 percent in September. Prices of fruits and vegetables were also up 9.6 percent from 1.5 percent. Meat prices rose 4.5 percent last month from 2.7 percent in September.

Santos said in a report to President Macapagal-Arroyo that a 12.1-percent increase in water prices contributed to the rise in inflation last month.



Copyright 2009 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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