Easing inflation shows economy is strong, says DOF official

MANILA, Philippines - The decline in inflation in February is reflective of the strength of the Philippine economy despite the adverse effects of last year’s Super Typhoon Yolanda, a Department of Finance official said.

“The slight decline in headline inflation in February to 4.1 percent (from 4.2 percent in January) and the bigger decline in core inflation to three percent (from 3.2 percent) confirms the continuing macroeconomic stability of the country,” Finance Undersecretary Gil Beltran said.

He said the latest inflation rate is within the target set by the Development Budget Coordination Committee at between three and five percent.

The disruption of agricultural production in the storm-ravaged areas in the Visayas resulted in higher domestic prices, he noted.

“Basic consumer goods and services showed lower increases but several volatile items like electricity and some food products, particularly rice and fruits, showed increases,” Beltran said.

“International prices of oils and fats including coconut oil and cocoa beans also rose, boosting local prices of complements like sugar and chocolate,” he added.