Headline inflation slowed down further to 0.9 percent year-on-year in September 2019 from 1.7 percent in the previous month and was within the BSP’s expected range of 0.6-1.4 percent for the month. The resulting year-to-date average inflation rate of 2.8 percent remained well within the Government’s target range of 3.0 percent 1.0 percentage point for the year. Similarly, core inflation�which excludes selected volatile food and energy items to measure underlying price pressures�eased to 2.7 percent in September from 2.9 percent in August. Month-on-month seasonally-adjusted inflation was nil in September compared with 0.1 percent in the previous month.

Most major commodity groups registered either lower or negative inflation rates in September. Year-on-year food inflation has turned negative in September as prices of rice, corn, vegetables as well as sugar, jam, honey, chocolate, and confectionery continued to decline relative to year-ago levels. Among non-food items, electricity, gas, and other fuels inflation remained negative due to lower electricity rates as a result of the downward adjustment in generation charges.

The latest inflation reading remains in line with the BSP’s assessment of a benign inflation outlook, with average inflation expected to stay within the Government’s target range of 3.0 percent 1.0 percentage point for 2019 � 2021. Going forward, the BSP will remain watchful over latest economic developments here and abroad to ensure that the monetary policy stance remains consistent with the BSP’s price stability objective.

Source: Bangko Sentral ng Pilipinas (BSP)