PHL Inflation slows down to 6 percent after series of oil price rollback

(Eagle News) – Inflation, or the increase in prices of goods and services, for November, slowed down to 6 percent, according to the latest data from the Philippine Statistics Authority.

This was much lower than October’s 6.7 percent, and was within the lower end of the projection of the Bangko Sentral for inflation between 5.8 percent and 6.6 percent.

It is also lower than the 6.3 forecast of the Department of Finance.

According to the PSA, the slowdown in the rice of prices was noted in food, non-alcoholic beverages, and in water, gas, electricity and fuel rates, among others.

“Slowdowns in the annual increases were noted in the indices of food and non-alcoholic beverages at 8.0 percent; housing, water, electricity, gas and other fuels, 4.2 percent; and communication, 0.4 percent,” the PSA report said.

But the PSA said that apart from “selected food and energy items, core inflation continued to move upward as it settled to 5.1 percent in November 2018.”

In October 2018, core inflation was recorded at 4.9 percent and in November 2017, 2.4 percent.

The 6 percent inflation rate this November was, however, still much higher than November 2017 inflation of 3 percent.

In Metro Manila, inflation was even lower, at 5.6 percent, in November.

Likewise, in areas outside Metro Manila, the inflation for November slowed down to 6.2 percent. In October, it was recorded at 6.8 percent.

The slowdown in inflation was recorded after successive price rollbacks in petroleum products.

This was the first time this year that there was a slowndown in inflation.

Since the first quarter of the year, the inflation figures continued to rise after the implementation of the tax reform law, weakening peso, and high oil prices at the time.