THE poorest Filipinos saw a reprieve from high commodity prices as they experienced slower inflation in September, according to the Philippine Statistics Authority (PSA).
Based on PSA data, inflation for the poorest was at 0.9 percent. This was the lowest since November 2015 when inflation for the bottom 30 percent was also at 0.9 percent.
Inflation for the poorest slowed from 2.3 percent in August 2019 and 9.5 percent in September 2018. Year-to-date inflation for the bottom 30 percent is at 3.8 percent.
PSA traced the slowdown in inflation for the poorest Filipinos to the 0.4-percent deflation in the prices of fuel, light and water . Inflation for FLW was at 10 percent in September 2018.
Data also showed food, beverages and tobacco (FBT) as another major contributor to the slowdown in inflation—from 10.8 percent in September 2018, this slowed to 0.7 percent.
Food prices, PSA data showed, saw a 0.3-percent deflation in September 2019. This is the first time this year that food prices contracted.
Notably, inflation for all income households also experienced a similar decline in food prices mainly due to the decline in rice prices in September.
Other factors included housing and repairs (H&R), 3.5 percent from 5.1 percent; services, 3 percent from 3.2 percent; and miscellaneous, 2.2 percent from 2.1 percent.
Meanwhile, the poorest in Metro Manila or the National Capital Region (NCR) saw a 0.6-percent deflation in commodity prices in September 2019.
Inflation for the poorest in the Philippines’s richest region was at 0.1 percent in August and 8.1 percent in September 2018.
Annual declines were observed in the indices of FBT at 0.4 percent; and FLW, 4.7 percent. Moreover, the annual rate of miscellaneous index slowed down to 1.7 percent.
Inflation for the bottom 30- percent income households in Areas Outside NCR (AONCR) slowed down further to 0.9 percent in September 2019. Inflation was higher at 2.4 percent in August 2019, and 9.5 percent in September 2018.
The annual rate of the FLW index fell by 0.3 percent during the month. Moreover, slowdowns in the annual increments were observed in the indices of FBT at 0.7 percent; H&R, 3.5 percent; services, 3 percent; and miscellaneous, 2.2 percent.