Philippines: Inflation plunges further below Central Bank target range in September
Consumer prices rose 0.17% month-on-month in September, matching August’s increase. A decrease in the prices of housing, water, electricity, gas and other fuels partially offset higher prices for transport, food and non-alcoholic beverages, and alcoholic beverages and tobacco.
Inflation decelerated sharply to an over three-year low of 0.9% in September from 1.7% in August, consequently sinking further below the lower limit of the Central Bank’s target band of 2.0%–4.0%. This could open the door for the BSP to unwind monetary policy rates further. Core inflation, which excludes volatile food and energy prices, softened to 2.7% in September from 2.9% in August, while annual average inflation eased to 3.6% from 4.1%.