July 19, 2018, 4:08 am
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July inflation higher at 2.8%

Headline inflation rose to 2.8 percent year-on-year in July from 2.7 percent in June. 

The resulting year-to-date average inflation rate of 3.1 percent was in line with the government’s target range of between 2 and 4 percent for 2017. 

Meanwhile, core inflation—which excludes certain volatile food and energy items to measure underlying price pressures—decelerated to 2.1 percent in July from 2.6 percent in the previous month. 

On a month-on-month seasonally-adjusted basis, headline inflation rose to 0.3 percent in July from -0.1 percent in June.

The Bangko Sentral ng Pilipinas said the July inflation rate rose slightly as a result of non-food components, in particular the Philippine National Railways (PNR) fare increase, upward price adjustments for gasoline and diesel products, the increase in electricity rates due to higher generation charges, and higher rental rates for housing. 

Food inflation, meanwhile, eased as most food items such as, rice, meat, oils and fats, as well as fruits posted slower price increases relative to year-ago levels while items such as corn, vegetables, and sugar, jam, honey, chocolate registered negative inflation rates.

Nestor Espenilla, BSP Governor, said that the latest inflation outturn is consistent with the BSP’s assessment of a manageable inflation outlook over the policy horizon. 

Earlier, the BSP said it continues to see a manageable inflation outlook over the policy horizon after taking into consideration the latest inflation reading in July. 

“The inflation path will be supported by the continued strength of the domestic economy as well as negative base effects in the last four months of 2017,” Espenilla said.

He added that the “within-target path of inflation over the policy horizon provides the BSP with the flexibility to assess our monetary tools to enhance further our responsiveness to the evolving requirements of the economy with due consideration of external factors with potential impact on domestic monetary conditions.”
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