Inflation Rate up by 4.8 percent due to Typhoon Pedring

Typhoon Pedring - US Embassy Roxas Boulevard
Prices of consumer goods and services increased by 4.8 percent in September 2011 compared to the same month last year. This was due to weather-related disruption in supply and high priced gasoline, according to the National Economic and Development Authority (NEDA).
“The faster increases in the prices of some food items, due to typhoon-induced supply shocks, as well as domestic petroleum products, specifically gasoline fuelled higher inflation rate in September 2011,” Socioeconomic Planning Secretary Cayetano W. Paderanga, Jr. said.
Latest data from the National Statistics Office showed that based on 2006 prices, the relatively faster rate of 4.8 percent headline inflation last month was attributed to accelerating price increases in housing, water, electricity, gas and other fuels (5.7% in September 2011 from 5.1% in August 2011); transport (7.1% from 6.9%); health (3.4% from 3.3%); clothing and footwear (3.9% from 3.8%); and recreation and culture (1.7% from 1.6%).
Based on 2000 prices, last month’s inflation was at 4.3 percent. The average inflation for the first three quarters of this year was also at 4.3 percent.
The 2006 and 2000 consumer price data series both recorded a year-to-date average inflation rate that is within the 3.0 to 5.0 percent inflation target for the year, as indicated in the Philippine Development Plan (PDP), 2011-2016.
Inflation rate is the percent increase in the prices of goods and services commonly purchased by households, as measured by the Consumer Price Index (CPI).
Citing data from the Bureau of Agricultural Statistics, Paderanga said that prices of several crops and fish in Metro Manila posted significant increases for the period September 21-29, as Typhoon Pedring left considerable damage in Central Luzon and the Cordilleras.
“After typhoon Pedring hit the country, the average price of vegetables and fish products went up due to production losses and was further raised by food supply obstruction due to impassable roads.” said Paderanga.
He noted that prices of vegetables, such as ampalaya, eggplant, cabbage, kangkong, potatoes and carrots, rose by 31.3 percent, while the average price of fish products like galunggong and bangus inched up by 6.9 percent.
Meanwhile, last month’s core inflation based on 2000 prices, which excludes prices of selected food and energy items, increased by 3.5 percent year-on-year. Core inflation represents a more long-term inflation trend, as it excludes certain items that have short-term and volatile price movements.
An October 6, 2011 press release from the National Economic and Development Authority