(Eagle News) — The Philippines’ inflation rate for the bottom 30 percent of income households eased further to 4.8 percent in October, the Philippine Statistics Authority said on Friday, Nov. 5.
According to the PSA, the inflation rate for that group in September was at 5.0 percent while the rate was at 2.9 percent in October 2020.
The PSA said the deceleration was mainly due to the slower annual rate observed in the heavily-weighted food and non-alcoholic beverages index, at 5.1 percent.
Annual increases, it said, also slowed down in the indices of the following commodity groups:
a. Alcoholic beverages and tobacco, 9.7 percent;
b. Clothing and footwear, 2.5 percent;
c. Furnishing, household equipment and routine maintenance of the house; and recreation and
culture, 1.8 percent
d. Education, 0.9 percent.
In Metro Manila, the PSA said inflation of consumer items for the bottom 30 percent income households also decelerated further to 3.0 percent in October 2021.
The rate was at 4.2 percent in September.
Annual increases were reported in the following:
a. Food and non-alcoholic beverages, 3.2 percent;
b. Alcoholic beverages and tobacco, 13.0 percent;
c. Clothing and footwear, 0.6 percent;
d. Education, 0.2 percent; and
e. Restaurant and miscellaneous goods and services, 1.8 percent
A similar trend was observed in areas outside Metro Manila, with inflation for that particular group easing to 4.9 percent.
Inflation measures the rate of rising prices of goods and services in an economy.
If inflation occurs, there can be higher prices for basic necessities such as food.
Inflation also erodes a consumer’s purchasing power, making the money saved today less valuable.