QUEZON CITY, Philippines – Inflation continued to slow down to 2.4 percent last month from 2.7 percent in December last year, the National Economic and Development Authority (NEDA) announced on Thursday.
Economic Planning Secretary Arsenio M. Balisacan attributed the drop in inflation rate to the adequate supply of basic food items, and lower petroleum prices and electricity rates.
“The lower inflation out-turn in the first month of 2015 bodes well for consumption growth. It is aligned with market expectations, given the consensus forecast of 2.4 percent for the same period. It is also within the medium-term inflation target set at 2 to 4 percent for the year by the Development Budget Coordination Committee,” said Balisacan, who is also the director general of NEDA.
He said the absence of new major economic and weather shocks that could considerably affect food supply, and the normalization of the supply of other food products due to the lifting of the expanded truck ban in September 2014 have also helped ease inflation.
Balisacan further reported that rice prices, which account for 38 percent of total food inflation, continued to ease their year-on-year growth last month, with rice stocks registering a double-digit year-on-year growth in December 2014.
The rollbacks in the prices of petroleum, kerosene and Liquefied Petroleum Gas prices since the last quarter of 2014, owing to rising global oil supply and low oil demand, also contributed to the slowdown of inflation, he noted, adding that this resulted in reduced electricity rates in January.
Balisacan however warned of “risks to a manageable inflation rate” in the coming months.
“The lingering possibility of El Niño occurrence in the first quarter of 2015 and power woes remain an overhanging concern and must be holistically addressed,” he said.
Inflation rate slowed down in January- NEDA
