Philippine headline inflation likely went up in October due to the increase in some food items and electricity rates, analysts polled by The Manila Times said. Roces said electricity rates also went up during the month and a spike of electricity demand in Meralco service areas was also reported. ING Bank Manila Senior Economist Nicholas Mapa, meanwhile, said base effects alongside slightly higher food prices, transport costs and education expenses will be the likely drivers for the slight uptick in headline inflation. “We continue to believe that headline inflation numbers may currently run slightly faster than actual inflation on the ground. Given that PSA estimates inflation based on a fixed-weight basket, headline inflation numbers may not be able to capture the natural shift of consumers during the pandemic,” said Mapa.

Source: Manila Times November 01, 2020 16:30 UTC