ASEAN KEY DESTINATIONS
Inflation to accelerate further in October
Inflation could accelerate to its fastest pace so far this year in October due to higher prices of non-food items, the Department of Finance (DOF) said Monday.
The DOF expects inflation to accelerate to 3.5 percent in October, from 3.4 percent in September, the fastest in the first nine months of the year.
"[A]lcoholic beverages and tobacco likely increased to 6.7 percent from 6.4 percent; housing, utilities and fuels to 4.1 percent from 3.8 percent; electricity, gas and other fuels to 9.2 percent from 8.2 percent; furnishings and household equipment to 1.9 percent from 1.8 percent; and recreation and culture to 1.5 percent from 1.4 percent," the department said in a statement.
However, these may be offset by a slowdown in food inflation in light of the harvest season.
"Food inflation may decline further in November 2017 as the rice harvest has started pushing down domestic rice prices," Finance Undersecretary Gil Beltran said.
For its part, the Bangko Sentral ng Pilipinas (BSP) expects inflation to settle within 3.2- to 3.7-percent in October, on the back of higher utility prices.
Pump prices of petroleum products rose in three out of the four weeks of October, while the Manila Electric Co. (Meralco) imposed an increase of P0.0345 per kilowatt-hour during the month.
The Philippine Statistics Authority is scheduled to release the October inflation rate on Tuesday, November 7, 2017. — Jon Viktor Cabuenas/VDS, GMA News
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