THE poorest Filipinos saw inflation continue to slow in October on the back of cheaper food items and utility prices, according to the latest data from the Philippine Statistics Authority (PSA).
The PSA said inflation for the bottom 30 percent slowed to 0.8 percent in October 2019. In September, it was at 0.9 percent and in October last year, 9.5 percent.
The heavily weighted food index contracted 0.6 percent in October 2019. In September 2019, inflation contracted 0.3 percent, while it increased to 9.8 percent in October 2018.
“This is the lowest inflation recorded for this income group since November 2015, in which the inflation rate was posted at 0.9 percent,” PSA said.
However, data showed that inflation for the poorest in the National Capital Region (NCR) was at 0.2 percent, higher than the 0.6-percent contraction in September 2019.
The increase between October and September increased mainly due to the higher food, beverages and tobacco (FBT) index which posted a year-on-year growth of 0.9 percent.
Undersecretary for Planning and Policy Rosemarie G. Edillon of the National Economic and Development Authority (Neda) said, however, that this remains a low inflation rate, even if there was an increase.
“[Note these] two things: the inflation rate is actually very low [and] we think incomes have increased by more than this,” Edillon said.
Groups such as Ibon Foundation Inc. believe that real wages have been flat for over 15 years despite the increase in labor productivity.
However, Edillon said, the government does not have the latest data yet on wages, as well as its impact on the lives of the urban poor in Metro Manila.
“We don’t have the latest data yet. What we do know is that many more have jobs with pay,” Edillon said.
Inflation for the bottom 30 percent income households in AONCR eased further to 0.8 percent in October 2019. Inflation was higher at 0.9 percent in September 2019, and 9.5 percent in October 2018.
The annual rate of FLW index went down further by 0.6 percent in October 2019. In addition, slowdowns were noted in the annual increases of the indices of FBT at 0.6 percent; and services, 2.8 percent.
Meanwhile, the indices of clothing, H&R, and miscellaneous retained their previous month’s annual rates.
Image credits: Nonoy Lacza