Optimism rises as RP inflation steadies<\/p>\n
MANILA (AFP): The Philippine consumer price index was
\nunchanged from the previous month at 5.7 percent in July,
\nboosting government confidence that inflation could go down
\nfurther as economic growth speeds up, officials said over the
\nweekend.<\/p>\n
The July figure brought the average inflation rate in the
\nfirst seven months of the year to eight percent, the National
\nStatistics Office said in a statement.<\/p>\n
Month-on-month inflation hit 0.2 percent in July from a
\nrevised rate of 0.8 percent in June, the office added.<\/p>\n
The Central Bank of the Philippines said the July rate was
\nwell within the 7.8-percent ceiling set under a prevailing
\nstandby program with the International Monetary Fund (IMF).
\nIt credited the steady inflation rate to stable food prices,
\nremarking that the year-on-year consumer price index for food,
\nbeverages and tobacco, housing and repairs, clothing and
\nmiscellaneous items went down in July.<\/p>\n
However the central bank admitted the rate for services and
\nfuel, light and water went up.<\/p>\n
The central bank said the stable inflation rate would increase
\nflexibility in conducting monetary policy \"to achieve the goal of
\nreducing inflation while maintaining the broad stability of the
\npeso.\"<\/p>\n
Additionally, the decline in interest rates and the slowdown
\nin inflation are expected to boost business confidence further,
\nhopefully leading to more lending by the banking system, the
\ncentral bank said.<\/p>\n
Analysts said the inflation figures for July were within
\nexpectations.<\/p>\n
\"It wasn't disappointing (but) we were not (pleasantly)
\nsurprised with it,\" said April Lee of Citisecurities Inc.
\n\"As long as it is below six percent, it is okay,\" Lee said.<\/p>\n
But she warned that recent widespread flooding in and around
\nMetropolitan Manila could push up inflation in the coming months
\nif it hurts agricultural production -- a major factor in the
\ninflation rate.<\/p>\n
Other analysts said the inflation rate may remain unchanged
\nthis month but could go up slightly in August if the floods
\nhamper the distribution of agricultural products in the capital.
\nHowever central bank governor Rafael Buenaventura said that
\ndespite the concerns over the floods, \"I'm confident we can keep
\n(within) our macroeconomic targets, including inflation.\"<\/p>\n
Days of monsoon rains left widespread floods in Metropolitan
\nManila and nearby provinces although the water in many areas has
\nsince receded.<\/p>\n
The year-on-year inflation rate for the highly-urbanized
\ncapital of Metropolitan Manila rose from 3.9 percent in June to
\n4.3 percent in July while the rate in the largely-rural areas
\noutside the capital went down to 6.2 percent from 6.4 percent the
\nprevious month.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/optimism-rises-as-rp-inflation-steadies-1447893297",
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