NEDA sees 2012 inflation rate near 3%

The National Economic and Development Authority (NEDA) sees inflation rate for 2012 to settle at the low end of the government’s target of between three percent and five percent.
“The September data brought the headline inflation rate for the first three quarters of the year to only 3.2 percent, which is near the low end of the government’s target of 3.0 to 5.0 percent,” said Dr. Rosemarie G. Edillon of the NEDA-National Planning and Policy Staff.
The National Statistics Office (NSO) earlier reported that inflation in September eased to 3.6 percent from 3.8 percent last month.
Edillon said that lower prices of electricity, unleaded gasoline and kerosene dampened inflation in September 2012.
“We noted that MERALCO’s (Manila Electric Co.) generation and transmission costs decreased in September 2012 due to the significant decline in the charges imposed by the Wholesale Electricity Spot Market (WESM). This, in effect, resulted in lower electricity bills for consumers during that month,” said Edillon.
Industry data showed that the generation charge in September was lower by P1.34 per kilowatt hour (kWh) compared to that in August 2012, the lowest level since March 2012.
On the other hand, WESM charges declined to P8.74 per kWh in September from P14.70 per kWh in August.
Edillon also said that the September 2012 inflation was dragged down further by cuts in the price of kerosene, which declined by 5.4 percent compared to the price in September 2011. On the other hand, there was only a 0.7-percent change in the price of unleaded gasoline for the same period, compared to the 1.7-percent change to the previous period from August 2011 to August 2012.
“While rising food prices exerted pressure on inflation, it was partially tempered by lower increases in the price of fish,” said Edillon.
According to the NSO, inflation for commodities under the food and non-alcoholic beverages group was pegged at 3.7 percent in September 2012, which was much faster than the 3.3-percent inflation in August 2012. Meanwhile, the price of fish increased by only 6.8 percent in September 2012 compared to 7.3 percent in August 2012.
Edillon said that in selected Southeast Asian countries, inflation generally eased in September compared to the figure in August this year. [PNA]