The country’s inflation rate eased to 2.6 percent in February 2020, amid lower transport costs and oil prices, the Philippine Statistics Authority’s latest data showed.
The headline inflation in February is lower than the 2.9 percent recorded in the previous month and the 3.8 percent inflation in February 2019.
It is also within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 2.4 to 3.2 percent.
“The latest inflation outturn is consistent with the BSP’s prevailing assessment that inflation is expected to steadily approach the midpoint of the target range in 2020 and 2021,” Benjamin Diokno, BSP governor, said via Twitter.
“The BSP will consider these developments in the Monetary Board’s monetary policy meeting on March 19, 2020,” he added.
The February figure brings year-to-date inflation to 2.8 percent, within the government’s target range of two to four percent for the year.
Lourdines Dela Cruz, deputy national statistician, said in a press conference in Quezon City yesterday the main source of the downward trend in February 2020 inflation was the slower annual increment in transport.
“Specifically, the annual increase in petroleum and fuels for personal transport equipment decelerated to 1.2 percent in February 2020, from 13 percent in January 2020,” she said.
She also mentioned the slower annual rate in alcoholic beverages and tobacco; and housing, water, electricity, gas and other fuels, which was primarily due to the annual declines observed in kerosene, electricity and liquefied petroleum gas.
Meanwhile, the National Economic and Development Authority said in a statement the government needs to remain vigilant and well-positioned against possible risks to inflation in the country.
“While inflation is expected to remain well within the target for this year, government must not be complacent and ensure that strategies are well-positioned against risks brought by continuous spread of African Swine Fever (ASF), tighter rice supply from Thailand, and the on-going outbreak of coronavirus disease 2019 (COVID-2019),” Ernesto Pernia, socioeconomic planning secretary, said.
“We call on our colleagues in the government, both in the national and local levels, to stand ready in effectively managing the demand and supply of key agricultural commodities which will possibly be affected by these risks,” he added.
Pernia highlighted the recently reported oversupply of vegetables and possible delayed arrival of imported products due to production and logistics disruptions in view of the COVID-19 outbreak.
He said providing post-harvest facilities such as cold storage and other logistics support are necessary to assist the affected producers and consumers.
He added there is a need to strictly implement the national zoning and movement plan as well as the 1-7-10 protocol to prevent and control the spread of ASF to other localities.
The 1-7-10 protocol requires that all hogs within one-kilometer radius from the ASF-affected area are to be culled. Within the seven-kilometer radius, there will be controlling of movement, shipment and sale of hogs. Within the 10-kilometer radius, all hogs will be placed under monitoring.
Pernia also noted the need to effectively utilize the Rice Competitiveness Enhancement Fund to improve rice production in the country amid the risk.
“We also need to closely monitor other developments particularly those that may cause disruptions in the global supply chains due to the spread of COVID-19,” he said.
