The Philippine Statistics Authority (PSA) [link] revealed that our August inflation reading slowed to 3.3% in August, down from 4.4% in July. The Consumer Price Index (CPI) was 126.60 for August, which was a 0.08% increase relative to July ‘s 126.50 reading. The Bankgo Sentral ng Pilipinas (BSP) said that this inflation reading was “within the BSP’s forecast range of 3.2 – 4.0 percent for the month”, and added that our year-to-date average inflation is now 3.6% which is also “within the Government’s target range.” On the hot topic of rice price inflation, the BSP said, “Rice inflation decelerated markedly on the back of continued import arrivals levied with lower tariffs.” This assertion was disputed by Abacus Securities’s Head of Research, Nicky Franco [link], who posted a chart plotting Rice Price CPI and Inflation to show that the rice CPI component is basically flat (117.5 in August vs 118.1 in July) and only appears to be falling due to the drop in year-on-year inflation, which is just a high base effect.