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.
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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.
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.
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.