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Food, transport price spike to blame

Prices of food, transport, water, electricity, and gas pushed up inflation in August 2017.

A report from NEDA-attached agency Philippine Statistics Authority states that headline inflation increased to 3.1 percent in August 2017 from 2.8 percent in the previous month.

Core inflation, which excludes select volatile food and energy prices, also rose to 3.0 percent in August, higher than the revised 2.8 percent in July.

This is slightly higher than market expectations of 3.0 percent, but still within government’s target of 2 to 4 percent.

“Inflation is still expected to remain well within government’s target for the year despite accelerating for the second time in a row. Nonetheless, we should continue to closely monitor upside and downside risks,” Socioeconomic Planning Secretary Ernesto M. Pernia said.

Food inflation rose to 3.7 percent in August 2017 from 3.4 percent in July 2017. This is mainly due to faster price increases in vegetables, fish, corn, flour, bread, and other cereals.