INFLATION KEEPS ON EASING DOWN | Marvin Germo

INFLATION KEEPS ON EASING DOWN

By: Marvin Germo | August 31, 2019

Inflation To 1.3%

It’s been more than three years since the general increase in the prices of general merchandise has slowed down. This can be attributed to lower prices of power, rice, and fuel this month of August. The Bangko Sentral ng Pilipinas’ Department of Economic Research reported that the inflation rate for August will fall within 1.3-2.1% range, lower than what has been recorded in July this year. It seems like our economy keeps on running on a consistent path towards progression. Here are some of the helpful information about this month’s inflation rate.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Manila – September 14, 15, 21, 22,&28, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Cebu – October 26-27,2019
Stock Smarts Taiwan – November 2, 2019
ICON Davao – November 30, 2019

Lower Domestic Prices

It is the lower domestic prices of kerosene, diesel, and gasoline that contributed to the easing down of inflation rate. Plus, the declining prices of rice and the downward adjustment in electricity rates. The depreciation of peso and increasing prices of some food products can be partly offset by the price decline of the products mentioned above. The estimate of the central bank for this month is a match to the rate of 1.3% recorded in June, July, and August 2016. And after the 0.9% reading last May 2016, this month would have the slowest reading since then. The 1.3% inflation corresponds to the lower band forecast of the central bank.

Upper Band Forecast

The upper band forecast falls on 2.1% and this is equal to the 2.1% print last November 2016 and would be the slowest read after the 1.8% last October 2016. Compared to the 2.4% and 6.4% logged in July and August last year, the upper band is still slower. If taken for seven months until July this year, the inflation rate has eased down to 3.3% from 4.5% last year. The inflation figure will be posted by the Philippine Statistics Authority (PSA) on September 5. The data also showed that the average price of well-milled rice fell by 7.3% year by year. During the first two weeks of August, the price of rice continues to ease down to P42.71 per kilo.

July Inflation

The inflation just broke the record in 31 months last July. The rate was the slowest which was proof that our economy keeps on progressing. Per the report of the Philippine Statistics Authority (PSA), the inflation eased down to 2.4% from 2.7% recorded last June and 5.7% posted in July 2018. There are expectations that the central bank will continue to loosen monetary policies and if that happens, the result will be better in the coming months and it is expected to seen in August results. In fact, the rate last July matched the 2.7% last July 2017 and within a 31-month time frame, it was moving at low speed.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
Stock Smarts Book