MANILA: Inflation was steady at 2.9%t in January as a decline in rice prices – a first in more than three years – and slower increase in utility costs curbed typhoon-induced jump in food prices.
Inflation, as measured by the consumer price index (CPI), was unchanged from December’s rate, the Philippine Statistics Authority reported on Wednesday. But the January print was higher than the 2.8% median estimate in an Inquirer poll of economists last week.
Nevertheless, the January CPI settled within the 2.5 % to 3.5% forecast range of the Bangko Sentral ng Pilipinas (BSP).
It also marked another month of benign inflation, staying within the 2% to 4% target range of the BSP.
Broken down, inflation for the heavily weighted food basket sped up to 3.8% from 3.4% in the preceding month, making it the top contributor to overall price growth as typhoon-induced supply problems persisted.
The statistics agency reported notable price hikes in tomatoes, which posted an increase of 155.7%, as well as in pork and galunggong (round scad).
But those cost spikes had been offset by the 2.3% contraction in rice prices, the first such decline since December 2021.
At a press conference, National Statistician Claire Dennis Mapa said the deflation of the staple grain would likely continue until July due to distortions from base effects.
“Any action to reduce the price of rice is always beneficial to our Filipino consumers,” Mapa said.
Other contributors to the stable headline inflation rate last month was the mild 2.2% uptick in utility costs and rent, easing from the 2.9% rise in December.
Restaurants and accommodation services also posted a slower price gain of 3.2%, from 3.8% previously.
“We remain vigilant and proactive in anticipating and addressing future developments, whether upside or downside risks, unforeseen or otherwise,” said Secretary Arsenio Balisacan of the National Economic and Development Authority.
The BSP said it would maintain a “measured approach” to monetary policy easing to ensure price stability.
The central bank added that the rice tariff reduction and negative base effects were expected to support disinflation. — The Inquirer/ANN
