The Philippine Statistics Authority (PSA) recently reported that effective government economic policies hit its target as inflation further slowed down to 3.8 percent in February 2019.
The Bangko Sentral ng Pilipinas earlier forecasted that inflation in February 2019 to range between 3.7 percent to 4.5 percent, driven by higher domestic oil prices and higher electricity rates.
“This positive development is proof that the macroeconomic policies of the Duterte administration have been effective in addressing soaring prices,” Presidential Spokesperson Salvador Panelo said.
Price growth remained at 3.8 percent in February, slower than the 4.4 percent recorded in January 2019, according to the PSA report.
The inflation slowdown in February 2019 is attributed to the slower annual increase in the “index of the heavily-weighted food and non-alcoholic beverages at 4.7 percent”.
The “annual gains were also slower in the indices of other commodity groups, except for communication and education,” the PSA report said.
“The education index continued to post a negative annual rate of 3.8 percent. Moreover, inflation for communication remained at 0.4 percent,” the PSA report said.
As further inflation improvement is expected, the government will continue to guard prices of basic goods.
The government expect inflation to return within the 2 to 4 percent target starting in the first quarter of this year.
“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.