Headline inflation in July was unchanged at 1.9 percent from June due to slower increases in food prices, the Philippine Statistics Authority said Friday.
The National Economic and Development Authority predicted inflation would be manageable for the rest of the year.
“The steady inflation in July is due to slower increases in food prices, which were able to offset higher electricity charges,” said Economic Planning Secretary Ernesto Pernia.
Core inflation, which excludes selected volatile food and energy prices, alo remained stable at 1.9 percent in July.
The July inflation rate was within the Bangko Sentral ng Pilipinas forecast of 1.5 percent to 2.4 percent and the median market expectations of 1.9 percent.
“The manageable inflation trend in the first seven months of 2016 is expected to continue for the rest of the year considering the expanding productive capacity of the domestic economy, persistently low oil prices, solid private household consumption and investment, buoyant business and consumer sentiment, and adequate credit and domestic liquidity,” said Pernia, who is also Neda director-general.
The headline inflation in the first seven months of 2016 averaged at 1.4 percent, or below the low end of the government’s inflation target of 2.0 percent to 4.0 percent.
“We are thus expecting full-year inflation to average at around 1.98 percent,” Pernia added.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said inflation would remain manageable in the coming months despite the risks to the outlook this year, particularly the weaker global economy.
“Inflation for July at 1.9 percent is within our forecast range of 1.5 to 2.4 percent for the month. This supports our view that monthly inflation will creep to within target range, with full year average just at or slightly below the lower bound for 2016,” Tetangco said in a text message.
“The risks to the inflation outlook remain broadly the same—weaker global growth outlook counterbalanced by steady domestic aggregate demand,” Tetangco said. With Julito G. Rada
