MANILA -- Philippine consumer prices eased to its lowest level in 20 months, pulled by lower food and non-food prices amid the decline in electricity and fuel costs.

The Philippine Statistics Authority reported that the country's headline inflation declined to 2.2 percent in April 2015 from 2.4 percent in the previous month.

National Economic and Development Authority Deputy Director-General Emmanuel Esguerra said last month's figure is well within the Development Budget Coordination Committee's inflation target range of 2.0 to 4.0 percent.

“Low and stable inflation in January to April 2015, which averaged at 2.3 percent, bodes well for consumption growth,” he said in a statement.

The PSA reported that moderate inflation in the food subgroup to 4 percent from 4.4 percent lingered in April 2015, pulling down headline inflation.

It attributed the slowdown in food inflation to slower price adjustments in rice, meat and fruits.

Non-food inflation also slackened in April 2015 following continued rollbacks in electricity, gas, and other fuels. Rollback in domestic petroleum prices continued following the sharp decline in international oil prices since the last quarter of 2014.

Meanwhile, core inflation, which excludes selected volatile food and energy prices, also fell to 2.5 percent from 2.7 percent in March 2015 and 2.9 percent in April 2014. Core inflation in the first four months of 2015 averaged at 2.5 percent.

Inflation in the National Capital Region (NCR) moderated to 1.5 percent in April 2015 from 1.9 percent the previous month due to slower inflation in several major commodity groups including food and non-alcoholic beverages.

Outside NCR, inflation slid to 2.3 percent last month from 2.6 percent in March 2015.

Esguerra expects stable domestic prices in the next few months amid potential risks to inflation such as the current episode of mild El Niño.

“The peso is expected to remain relatively stable given the country's strong external position owing to strong remittances and foreign direct investment inflows, ample international reserves, and a manageable level of external debt,” he said.

To address potential risks to prices, Esguerra underscored the need for the country to regularly monitor drought incidence in agricultural areas to ensure that appropriate policy actions are implemented without delay.

“Timely importation of rice to augment domestic supply should serve as a ready measure to prevent the repeat of the high rice prices witnessed in the third quarter of 2013 until 2014,” he stressed.

Esguerra said it is also critical for the government to continue exploring a more lasting solution to further decongest Metro Manila and avoid future disruptions in the domestic supply chain.

He noted that productivity increases in agriculture and food processing industries should be promoted.

“There should be programs to cover the use of appropriate technology to expand production capacity as well as intensification of credit programs and facilities with crop insurance,” he added. *AFP

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