spot_img
27.7 C
Philippines
Friday, March 29, 2024

Rody’s policy tamed inflation, PSA says

- Advertisement -

President Rodrigo Duterte’s macroeconomic policies have been “effective” in taming inflation, Malacañang said Tuesday.

READ: ‘Duterte deeds tame inflation’

Inflation further slowed to 3.8 percent in February 2019 from the 4.4 percent in January, according to the Philippine Statistics Authority.

As a result, inflation returned to the Bangko Sentral ng Pilipinas’ target range in February, lessening the pressure on the monetary authorities to tighten policy.

The consumer price index rose 3.8 percent in February from 4.4 percent in January, slower than the expectation of economists in a Reuters poll.

- Advertisement -

Slower inflation in rice, corn, milk, cheese, eggs, vegetables, alcoholic beverages and transportation contributed to the further cooling of the headline rate, according to the Philippine Statistics Authority.

“This is good news, back within target,” said HSBC economist Noelan Arbis. 

“We do expect inflation to be firmly within target for the remainder of the year.”

The PSA attributed the drop in inflation to the slower annual increase in the index of food and non-alcoholic beverages, tobacco and transport.

The recent figure registered as the slowest rate of increase in the prices of basic commodities in a year. This was also the first time the government hit its 2-4 percent inflation target after a year.

“Just as we thought, inflation is decelerating. 3.8 percent for February beats most forecasts,” newlyappointed Bangko Sentral ng Pilipinas governor Benjamin Diokno said in a statement. 

“This gives us confidence that our medium-term inflation forecast ranging 2 to 4 percent is appropriate.” 

Presidential Spokesman Salvador Panelo said the latest inflation result was a “positive development.”

“We are pleased to know that inflation is going down as the economic managers said so a few weeks ago,” Panelo told reporters. 

“It will go down as expected, given the fact that they have placed certain measures that will put it down.”

Panelo said the latest inflation result was proof that Duterte’s macroeconomic policies had been effective in addressing soaring prices.

“We expect further improvement and disinflation as we continue to remain vigilant in monitoring the prices of basic goods used by ordinary Filipino consumers,” Panelo said.  

- Advertisement -

LATEST NEWS

Popular Articles