Inflation for September inches up
Davao City (8 September) -- The National Economic and Development Authority (NEDA) said today that higher food, beverage and tobacco prices pushed inflation up slightly this September. Headline inflation in September 2009 went up to 0.7 percent year-on-year, higher than the previous month's recorded rate of 0.1 percent but significantly lower than the 11.8 percent inflation rate in September 2008.
"Despite lower fuel, electricity, and cereal prices compared to the previous year, average consumer prices in September still crept up to 0.7 percent as essential food items such as dairy products (4.0%), eggs (5.8%), fish (6.2%), fruits and vegetables (1.5%) and meat (2.7%) posted higher prices. The double-digit rise in water prices (12.5%) also contributed to inflation," acting NEDA Director-General Augusto B. Santos said in a memorandum to President Gloria Macapagal-Arroyo.
September month-on-month inflation was recorded at 0.2 percent led by the increase in prices of fuel (2.7%) and fruits and vegetables (2.1%). Higher oil prices in the international market and the higher-than-average precipitation since July this year drove domestic prices up.
Santos added that the average inflation rate for the first nine months of 2009 averaged 3.4 percent, still within the Development Budget Coordination Committee (DBCC) forecast of 2.5 to 4.5 percent. Meanwhile, core inflation which measures the change in average consumer prices excluding certain items with volatile price movements such as food products and energy, further declined from 2.9 percent the previous month to 2.8 percent in September, suggesting some leftover momentum from the easing of prices worldwide.
The slight uptick in inflation was traced mainly to Areas Outside the National Capital Region (AONCR), recording a 1.1 percent inflation rate in September year-on-year. On the other hand, the NCR recorded negative inflation for the fourth consecutive month, posting a -0.3 percent during the same period. (NEDA-PIA XI) [top]