Inflation among poor households eases to 16-month low of 4.3%

MANILA, Philippines–The increase in prices being felt by poor families further eased to a 16-month low of 4.3 percent in April amid slower food price increases.

The latest Philippine Statistics Authority (PSA) data showed that inflation for the bottom 30 percent income households in the country last April was the lowest since the 3.7 percent posted in December 2017.

For the heavily weighted food, beverages and tobacco index, price increases decelerated to 4.5 percent in April from 7 percent during the same month last year and 4.9 percent in March.

The food alone index recorded inflation of 3.9 percent that month, down from 6.1 percent a year ago and 4.3 percent a month ago.

“The annual change of corn index dropped further by 3.4 percent in April. Moreover, annual mark-ups slowed down in the indices of rice at 2.9 percent; dairy products, 3.2 percent; fish, 6.8 percent; meat, 2.9 percent; and miscellaneous foods, 4.7 percent,” the PSA said.

But the PSA said “annual hikes were higher in the indices of cereal preparations at 3.9 percent; eggs, 2.4 percent; and fruits and vegetables, 6.9 percent.”

Prices related to housing and repair also slowed even as those of clothing as well as fuel, light and water inched up.

At the end of the first four months, the inflation for the bottom 30 percent household nationwide averaged 4.9 percent—3 percent in Metro Manila and 5 percent outside Metro Manila.

Outside Metro Manila, the inflation among poor households dropped to 4.3 percent in April from 6.3 percent a year ago and 4.6 percent a month ago.

However, April inflation among the poor in Metro Manila was a slightly higher 2.6 percent from 2.3 percent last March even as it was lower than the 6.3 percent posted in April last year.

PSA data showed that food price increases were faster in Metro Manila that month, such as in the case of eggs, meat, and fruits and vegetables, offsetting slower price hikes in rice, corn, cereal preparations, dairy products, fish, and miscellaneous foods.

Last year, amid food supply bottlenecks, especially of rice, inflation among poor families jumped to 7.2 percent from 3 percent in 2017, 1.4 percent in 2016, and 1.6 percent in 2015, PSA data showed. (Editor: Jonathan P. Vicente)