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Living In Cebu Forum. Best Expat Living in Cebu. Find Out Everything On Philippines

Living In Cebu Forum. Best Expat Living in Cebu. Find Out Everything On Philippines

Living In Cebu Forum. Best Expat Living in Cebu. Find Out Everything On Philippines

Living In Cebu Forum. Best Expat Living in Cebu. Find Out Everything On Philippines

Living In Cebu Forum. Best Expat Living in Cebu. Find Out Everything On Philippines

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Filipinos tighten belts as inflation jumps to new 9-year high in August

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Bangus or milkfish of various sizes are seen at a stall at the Commonwealth Public Market in Quezon City.
The STAR/Michael Varcas
Filipinos tighten belts as inflation jumps to new 9-year high in Augutus

MANILA, Philippines (Update 2, 12:24 p.m.) — Consumers already bearing the brunt of rising commodity prices continued to feel the sting of inflation, which hit its highest level in nearly a decade in August and may prompt the central bank to hike policy rates anew.

Inflation rose for the eighth consecutive month to 6.4 percent in August, the fastest pace since the 6.6 percent posted in March 2009. The official release of the data was delayed by more than an hour due to “technical difficulties,” the Philippine Statistics Authority said.

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The August print exceeded July’s 5.7 percent and topped the Bangko Sentral ng Pilipinas’ worst case scenario estimate for the month. In the first eight months, inflation averaged 4.8 percent, well above the central bank's 2-4 percent target range for the year.

Food and beverage prices up 8.5 percent

Broken down, prices of food and non-alcoholic beverages surged 8.5 percent while transport costs spiked 7.8 percent last month.

The National Capital Region felt an inflation rate of 7 percent in August, up from July’s 6.5 percent while inflation in areas outside the capital jumped to 6.2 percent from the previous month’s 5.5 percent.

In a statement, BSP Governor Nestor Espenilla, Jr. said the faster-than-expected inflation was mainly due to “food supply shocks," particularly in the rice market, that cannot be mitigated by adjusting the central bank’s benchmark rates.

RELATED: Rice prices up for 8th straight month

Espenilla added that elevated oil prices, a weakening peso and “strong” domestic demand fueled inflation last month.

“An unfortunate confluence of cost-push factors continue to drive consumer price inflation in August beyond the acceptable target range,” Espenilla said. “These warrant more decisive non-monetary measures to fully address.”

The BSP has raised its policy rates by a cumulative 100 basis points from May to August to discourage bank lending and cool down consumer demand that could have pushed up inflation. 

Read more at https://www.philstar.com/business/2018/09/05/1848899/filipinos-tighten-belts-inflation-jumps-new-9-year-high-august#QhJqIyBoL8ulj2L1.99

 

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Indeed. All of us are now experiencing inflation. Inflation is the abnormal increase of goods and services and it can greatly affect the daily lives of our people in providing there basic needs such as food. If average people are now budgeting and affected by the inflation rate, how much more to those unfortunate ones? some are crying for hunger. I hope duterte's administration will take an action to our increasing inflation rate especially here in Cebu.

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