Inflation hits bottom, gradual pickup ahead

Economists expect inflation to stay manageable but rise gradually in the coming months after consumer prices picked up by an average 1.5 percent in August, suggesting the recent disinflation trend has already bottomed out.

- By KEISHA TA-ASAN

"Inflation will likely remain manageable for the rest of the year. However, the latest print confirms that inflation has most likely reached the bottom," BPI lead economist Jun Neri said. He said the effect of softer rice prices would gradually fade, especially as the government has restricted rice imports.

In August, headline inflation quickened to 1.5 percent from July's 0.9 percent—above the market consensus of 1.2 percent. Core inflation, which excludes volatile food and energy items, also picked up to 2.7 percent from 2.3 percent a month earlier.

Year to date, headline inflation averaged 1.7 percent, while core inflation settled at 2.4 percent.