Inflation for certain households slows down

According to the Institute for Development and Econometric Analysis, Inc. (IDEA) latest Newsbriefs, a weekly digest produced by IDEA, Inc. to highlight the most recent national and international economic events, the consumer price index (CPI) for the bottom 30 percent of households in the Philippines eased during the fourth quarter of 2012. Inflation was pegged at 3.0 percent during the said period, a little slower compared to the third quarter’s inflation of 3.1 percent. Slower annual mark-ups on food, beverage, and tobacco indices were observed during the fourth quarter, thus helping inflation to lose steam. Inflation during the previous year was 5.2 percent.

Another positive development is that despite a tempered global sentiment, consumers from the Philippines continue to be optimistic, according to a survey released by Nielsen. The stellar performance of the economy in 2012 helped drum up a positive outlook on job prospects, thereby prompting a possible increase on personal consumption.

Likewise, at the national level, the annual average growth rate of the CPI for the bottom 30 percent households moved at a slower pace at 2.8 percent compared to 2011’s 5.1 percent. Similar movements were observed for the CPI of the National Capital Region (NCR) and areas outside it. Inflation in NCR slowed down to 1.7 percent in the fourth quarter from 3.3 percent in the third quarter, while inflation in areas outside NCR eased to 3.0 percent from the previous quarter’s 3.2 percent.

Per same published report, Treasury bills (T-bills) remained low during the auction on February 4 amid high market liquidity and heavy demand for securities. The 91-day T-bills fetched 0.05 percent, maintaining its rate from the previous auction. National Treasurer Rosalia V. de Leon said that the maintained rate for the 91-day T-bills shows the government can continue to bank on the country’s strong fundamentals and the market continues to have a high liquidity.

Furthermore, the Bureau of Internal Revenue (BIR) has begun its preparations for the tax filing season in April. Several electronic applications provided by BIR will be made unavailable due to routine maintenance for the tax filing season. Lilia C. Guillermo, BIR deputy commissioner for Information Systems, stated that the maintenance for the database applications part of the integrated tax systems will be scheduled mostly during weekdays or after office hours to ensure minimal disruptions.

The Philippines is highly likely to maintain a strong growth in 2013 according to BPI Asset Management. In a report released on February 6, BPI Asset Management stated that the Philippines’ gross domestic product would remain robust in 2013, with the group’s forecast pegged between 6.0 and 6.5 percent, well within the growth target of the government. Indicators for well-being, the report added, continue to be healthy, especially since consumption is expected to remain resilient.

Lastly, it was reported that several Malaysian businessmen have expressed their intent to invest in roughly Php23-billion worth of projects in Mindanao. The estimate is based on the discussions between the Mindanao Development Authority officers and the Putrajaya Malay Chamber of Commerce. Companies interested in investing in Mindanao are Tan Chong Group and TC Management Services Corp. Sdn. Berhad, according to IDEA.

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