Gov’t data say inflation among poor, 0.9%, lowest since 2015

The rate of increase in prices of commodities being purchased by poor Filipinos fell to 0.9 percent in September, a 46-month low, as food prices and cost of utilities declined year-on-year.

The latest Philippine Statistics Authority (PSA) data showed that the consumer price index (CPI) for the bottom 30-percent income households last month was the lowest since November 2015, when the rate was also 0.9 percent.

Inflation among poor households outside Metro Manila last September was also 0.9 percent year-on-year.

In Metro Manila, prices rose just 0.6 percent, marking a decline for two straight months compared to levels in 2018.

The average inflation rate among poor families averaged 3.8 percent by end of September 2019 compared to 6.7 percent in the first nine months of 2018.

Consumer price index was a record high of 9.5 percent among the bottom 30 percent income household in September and October 2018.

The PSA, in a report, said a major contributing factor in low inflation was the 0.4 percent yearly decline in costs of fuel, power and water. Prices of food, beverage and tobacco, slowing at 0.7 percent, were also a factor as well as 3.5 percent rise in housing and repairs, 3 percent rise in services cost.

Cost of food was the key, according to the PSA. It declined by 0.3 percent in September 2019 compared to 1.8 percent in August and 9.9 percent in 2018.

Rice prices fell 6.2 percent in September 2019 while corn’s fell 0.9 percent, the PSA said. Only eggs cost more, it said.

Consumer price index for the bottom 30 percent income households was based on 2000 prices while the PSA had adjusted national headline inflation with 2012 as a base./TSB