October inflation remains stable at 2.3%

Inflation in the Philippines edged up slightly in October to 2.3%, a modest increase from September's 1.9% rate, but it stayed well within the government’s 2-4% target range, according to National Statistician Dennis Mapa. Compared to the same month last year, when inflation was higher at 4.9%, the latest data marks a significant improvement.

From January to October 2024, the average inflation rate stood at 3.3%, remaining on course for the government's year-end goal. The increase in October was primarily driven by a rise in food and non-alcoholic beverage prices, which accelerated to 2.9% from 1.4% the previous month.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan expressed confidence that inflation will continue to stay under control. He emphasized the administration’s efforts to maintain price stability despite challenges from recent weather disturbances affecting food supply and logistics. “The government is fully committed to ensuring price stability and protecting Filipino households from undue shocks,” Balisacan stated.

The Department of Social Welfare and Development has implemented the Building on Social Protection for Anticipatory Action and Response in Emergencies and Disasters Program to assist communities affected by natural disasters, as the Philippine Atmospheric, Geophysical, and Astronomical Services Administration forecasts that La Niña could bring up to eight tropical cyclones through early 2025.

The Bangko Sentral ng Pilipinas (BSP) echoed NEDA's optimism, noting that October’s inflation rate was consistent with projections. The BSP highlighted easing pressures on key food items, particularly rice, and stated that its monetary policy would focus on sustaining price stability while fostering economic growth.

Meanwhile, Finance Secretary Ralph Recto noted that the government is actively addressing inflationary pressures, including recent typhoons. He pointed out that rice inflation, which increased to 9.6% in October, was influenced by base effects from last year’s price controls but remains manageable. Recto also highlighted a decline in international rice prices following India’s decision to lift its export ban.

House Ways and Means Committee Chair Joey Salceda was similarly optimistic, indicating that the full-year inflation rate will likely stay within the BSP’s target band. Salceda praised President Ferdinand R. Marcos Jr.’s tariff reduction measures, which he said stabilized consumer prices while benefiting farmers. He also cited positive trends in poultry and fish prices.