Inflation Sharply Eases to Lowest in 5 Months

Inflation in February eased to its lowest level in five months due mainly to the slower increases in food prices, according to the Philippine Statistics Authority (PSA).

- Louella Desiderio

Deputy National Statistician Divina Gracia del Prado said in a press conference yesterday that headline inflation—the rate of increase in average prices of goods and services typically purchased by Filipino consumers—slowed to 2.1 percent in February from January's 2.9 percent and the 3.4 percent in the same month last year.

The February inflation is the lowest since the 1.9 percent print in September last year.

It is also below the Bangko Sentral ng Pilipinas' 2.2 to three percent forecast for February.

Del Prado cited food and non-alcoholic beverages as the main driver of the downward trend in inflation as it posted a slower annual increment at 2.6 percent in February from 3.8 percent in the previous month.

Inflation for food alone eased to 2.6 percent in February from the previous month's four percent.

This was primarily due to vegetables, tubers, plantains, cooking bananas, and pulses, which had a slower inflation of 7.1 percent in February from the previous month's 21.1 percent.

Rice also contributed to the slower food inflation as it registered a sharper deflation of 4.9 percent in February from 2.3 percent in January.