Region’s inflation rate dips to 1.4% in September: PSA

THE REGION’S inflation rate continued to decline as the prices of different commodities were pulled by the movement especially of oil rates, data from Philippine Statistics Authority (PSA) showed.

As of last month, data from PSA bared that the region’s inflation rate dipped to 1.4% from 2.4% in August. It was also lower compared to September last year when the inflation rate of Davao Region was four percent.

The region’s consumer price index also dropped to 148.6 from 149.6 in August while the purchasing power of the peso remained stable at 0.67.

The trend in having a lower inflation rate was felt by the whole country as it eased to 0.4% from 4.4% in September last year. This dropped as there was “tempered price movement in food, power and oil rates,” according to National Economic and Development Authority (NEDA).

“We expect the current low inflation environment exhibited in the first nine months of 2015 to persist throughout the rest of the year, more so, as international oil prices continue to remain low and are not expected to increase significantly in the near term,” Economic Planning Secretary Arsenio M. Balisacan said in a statement.

As of Tuesday, oil companies implemented price rollback on its petroleum products. In a data of Department of Energy-Mindanao Field Office, the price of gasoline dropped by about P1 a liter while diesel declined by P0.35-P0.40 per liter.

Nilo J. Geroche, energy industry management division chief of DOE-Mindanao Field Office, said the price rollback was being implemented by the petroleum companies following the movement in the international market.

“With the supply glut, the price of the petroleum products in the global market dropped,” Geroche said.

Following the continuous decline on the pump prices, the NEDA XI projected that the region’s inflation rate will continue to drop this year. The whole-year inflation rate is expected to decline to about three percent from 3.7% last year.

This translates to stable prices of basic commodities in the market.

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