The rate at which prices change across the Philippines pushed past expert projections in February, averaging higher to 3.4 percent for the month from only 2.8 percent in January, the Philippine Statistics Authority (PSA) reported on Friday.
The February prices survey also placed the outcome at the top of the central bank’s forecast for the period, ranging from 2.8 percent to 3.6 percent.
According to the PSA, the greatest influence in the surge up the forecast range of the Bangko Sentral ng Pilipinas (BSP) came from the food and non-alcoholic beverages component of the consumer price index (CPI).
The food and non-alcoholic beverages component, the PSA said, accelerated to 4.6 percent in February from only 3.5 percent the month before.
This was on top of price increments in transport by 1.2 percent in February from a decline by 0.3 percent in January and from housing and utilities which similarly moved up by 0.9 percent versus only 0.7 percent.
PSA data show inflation actually slowing in the clothing and footwear component of the consumer basket to 3.6 percent from 3.8 percent, the furnishing, household equipment and maintenance component from 3.3 percent to 3.9 percent and even the restaurants and accommodation component from 5.3 percent to 5.5 percent.
The closely-watched core inflation, which removes volatile food and fuel prices from the CPI, flashed a promise by slowing to 3.6 percent from 3.8 percent, the lowest reading in 21 months based on PSA data.
According to the PSA, the CPI on a monthly basis grew 0.6 percent in February or the same pace it reported the previous month.
The BSP acknowledged inflation could temporarily accelerate above target range in the next six months due to the possible adverse impact of adverse weather conditions to domestic agricultural output and positive base effects.
“The risks to the inflation outlook remain tilted toward the upside. The upside risks to the inflation outlook could emanate from higher transport charges, higher prices of food commodities facing supply constraints, increased electricity rates, higher global oil prices, and implementation of a legislated increase in the minimum wage,” it said.
Looking ahead, the Monetary Board will consider the latest inflation outturn in its upcoming monetary policy meeting on 8 April 2024.
The BSP also continues to support the national government’s non-monetary measures to address supply-side pressures on prices and sustain the disinflation process.
