Inflation among poor households fell to 4-year low in October

Poor families continued to get relief from price pressures as the rate of increase in the prices of the items they consume further fell to a four-year low of 0.8 percent in October.

A Philippine Statistics Authority (PSA) report on Thursday showed that the consumer price index (CPI) for the bottom 30-percent income households last month was the lowest since the 0.4 percent posted in October 2015, based on 2000 prices.

The PSA said the cost of utilities covered by the fuel, light and water index declined 0.7 percent year-on-year in October.

Year-on-year price increases in the food, beverages and tobacco as well as services indices slowed to 0.6 percent and 2.8 percent, respectively.

The heavily weighted food-alone index dipped 0.6 percent year-on-year in October, compared to the 0.3 percent recorded in September.

“The annual rate of rice index decreased further by 7.3 percent in October. Likewise, the corn index registered an annual drop of 0.5 percent during the month,” the PSA said.

“Moreover, slower annual mark-ups were observed in the following food groups: cereal preparations, 2.1 percent; dairy products, 1.7 percent; fish, 5.1 percent; meat, 0.4 percent; and miscellaneous foods, 2 percent,” the PSA added.

However, prices of eggs rose by 5.2 percent year-on-year while fruits and vegetables saw a 2.9-percent increase.

Economic officials earlier said that prices of poultry products such as chicken and eggs had been rising as consumers buy alternatives to pork amid the African swine fever (ASF) scare.

At the end of the first 10 months, inflation among the poorest families averaged 3.5 percent, lower than the 7 percent during the same period last year.