INFLATION EASES FUTHER TO 1.9% IN SEPTEMBER 2024

Inflation further eased to 1.9 percent in September, the state statistics authority said which is lower than the 3.3 percent seen in August (Photo courtesy of Rappler)

The Philippine Statistics Authority (PSA) reported on Friday that the country’s inflation rate continued its deceleration streak for the second straight month in September amid slowdown of growth in food and transportation costs.

Inflation which which measures the rate of increase in the prices of goods and services, National Statistician and PSA chief Claire Dennis Mapa said it eased further to 1.9% last month, a sharp decline from the 3.3% rate in August.

According to Mapa, the main reason for the lower level of inflation in September 2024 than in August 2024 is the slower increase in the price of Food and Non-Alcoholic Beverages at a level of 1.4%. It has a 69.1% share in the reduction of general inflation in the country.

Bringing the year-to-date inflation print to 3.4%, still within the government’s ceiling of 2% to 4% for the entire year. 

The Bangko Sentral ng Pilipinas (BSP) earlier projected that September inflation would fall between 2% and 2.8%. Factors driving prices down include negative base effects, strengthening of the peso, and lower costs for rice, meat, vegetables, and oil. However, rising prices for fish, fruits, and electricity were expected to push inflation up.

Finance Secretary Ralph Recto has estimated full-year inflation in 2024 would settle at around 3.4%, and between 2.9% and 3.1% in 2025. And cautioned that the brewing conflict in the Middle East could threaten the favorable inflation forecast, especially if it develops into a full-scale regional war that could cause oil prices to spiral.

“Our biggest challenge really is external headwinds. And one would be the war in the Middle East. So we don’t want that to go out of hand, and possibly oil price increases, which we have no control over,” he said.

Source: GMA Integrated News 

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