The Philippine Statistics Authority (PSA) reported that overall inflation increased to 5.3 percent in August 2023.
The Philippine Statistics Authority (PSA) reported that overall inflation increased to 5.3 percent in August 2023 from 4.7 percent in July 2023. This results in a national average inflation rate of 6.6 percent from January to August 2023. Compared to August 2022, the inflation rate last year was 1% higher, at 6.3 percent.
Cited as the top three commodity groups contributing to the August 2023 overall inflation were food and non-alcoholic beverages with a 57.4 percent share, restaurants and accommodation services with a 12.8 percent share, and housing, water, electricity, gas, and other fuels with a 10.0 percent share.
Credits To: The Philippine Star
Moreover, the PSA identified that the food groups with the highest contribution to food inflation during the month of August 2023 were cereals and cereal products (this includes rice, corn, flour, bread, and other bakery products), with a 35.0 percent share; vegetables, tubers, plantains, cooking bananas, and pulses, with a 30.6 percent share; and fish and other seafood, with a 13.4 percent share.
Expectedly, since the inflation increase was high on the basic commodities, the core consumer prices also rose above the market forecast. This will likely have a strong impact on the public, which in effect will reduce the purchasing power of consumers.
Meanwhile, in its press release, the Bangko Sentral ng Pilipinas (BSP) Monetary Board decided to maintain monetary policy settings despite a generally higher path for inflation. Accordingly, its overnight reverse repurchase facility is at 6.25 percent. The interest rates on the overnight deposit and lending facilities were also retained at 5.75 percent and 6.75 percent, respectively.
In addition, the BSP stressed that it remains prepared to respond as necessary to safeguard the inflation target, in keeping with its primary mandate to ensure price stability.
