INFLATION QUICKENS UP TO 2.3% IN OCTOBER 2024

The Philippines’ inflation rate quickly rose to 2.3% in October after its lowest level in more than four years in September. Higher prices of food, nonalcoholic beverages and transport pushed the inflation higher, Philippine Statistics Authority (PSA) said on Tuesday.

Inflation measures the rate of increase in the prices of goods and services, accelerated further last month according to National Statistician and PSA chief Undersecretary Claire Dennis Mapa. In September, inflation was only at 1.9%, which had been the lowest rate since May 2020’s 1.6%.

October’s headline inflation accelerated at 2.3% driven by higher prices in food, nonalcoholic beverages and transport (Photo courtesy of Rappler)

Consumer price growth rose to 2.3 percent last month, higher than the 1.9 percent recorded in September but markedly lower than October 2023's 4.9 percent. This still fell within the 2.0 to 4.0 percent target of the Bangko Sentral ng Pilipinas.

The main contributor to the increase in inflation was the food and non-alcoholic beverages index, which went up from 1.4% in September to 2.9% in October. The increase in that index was driven by cereals and cereal products, which posted inflation of 7.5% in October from 4.9% in September. Under cereals and cereal products, rice in particular pushed up inflation.

Rice was the top contributor to the overall rate as well by commodity, as it increased from 5.7% in September to 9.6% in October for a 0.7-percentage-point share. 

"The uptrend in the overall inflation in October 2024 was primarily influenced by the faster annual increment in the heavily-weighted food and non-alcoholic beverages at 2.9 percent during the month from 1.4 percent in September 2024," the PSA said in a statement.

"Also contributing to the uptrend was transport with a slower year-on-year decrease of 2.1 percent during the month from a 2.4 percent annual drop in September 2024," it added.

Year to date, headline and core inflation were recorded at 3.3 percent and 3.1 percent, respectively. Both are still within the central bank's target range for the year. 

The National Economic and Development Authority (NEDA) said this average is “comfortably within the government’s target range of 2.0 to 4.0 percent,” as it assured the government is working to ensure food availability at stable prices.

“The government is working relentlessly to keep food available and prices steady, particularly for essential commodities. With targeted support and streamlined food supply chains, we aim to ensure that food is affordable and accessible for Filipino families, especially those most vulnerable to price shocks when disasters hit us,” Socioeconomic Planning Secretary Arsenio Balisacan said.

Source: The Manila Times 

Be part of ImHenyo community!

Get featured by sharing your stories, news, and comments

Email us at [email protected]