HEADLINE INFLATION likely slowed further in September due to lower prices of some staple food and power rates, analysts said.
A BusinessWorld poll of 16 economists held last week yielded a median estimate of 2.3%, closer to the higher end of the 1.8% to 2.6% forecast range given by the Bangko Sentral ng Pilipinas (BSP) for September and well within the 2-4% target for the year.
If realized, the median estimate will be the second consecutive month of slower inflation, following the 2.4% pace in August. However, it is still much quicker than the 0.9% logged in September 2019 which was the slowest pace since the 0.7% seen in April 2016.
The Philippine Statistics Authority will report the September inflation data on Oct. 6.
Analysts said key factors that may have contributed to easing inflation are food and utility prices.
Jessie Lu, an economist from Continuum Economics, said downside pressure likely came from food and non-alcoholic beverages components.
“Some food items, however, have experienced a slight increase last month such as pork and chicken due to limited supply. Otherwise, prices of other commodities remain stable,” Mitzie Irene P. Conchada, an economist from the De La Salle University said.
In September, rice prices slipped, with average farmgate palay prices down by 2.2% week on week to P17.64 per kilogram in the first week of the month. Average wholesale price of regular-milled rice likewise dipped 0.7% to P34.99, while its retail price slipped 0.5% to P37.91.
Further downward pressures to inflation include lower utility and oil prices, according to ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa.
“Price gains will dip from the previous month despite base effects as the economy remains in recession while crude oil prices reflect a global downturn, helping cap utility prices and the recent pickup in transport costs,” Mr. Mapa said.
Read more.. https://www.bworldonline.com/sept-inflation-likely-slowed-poll/
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