Philippines September inflation eases to 4-year low of 1.9%

The Philippines' inflation rate dropped to 1.9 percent in September 2024, the lowest level in more than four years. This marks a significant decline from 3.3 percent in August 2024 and 6.1 percent a year earlier.

“This is the lowest inflation rate since the 1.6 percent inflation rate recorded in May 2020,” the Philippine Statistics Authority (PSA) said Friday.

Inflation in the first nine months of 2024 averaged 3.4 percent, falling within the government's target range of 2 percent to 4 percent for the year.

The PSA attributed the slower September inflation rate to a decrease in the cost of food and non-alcoholic beverages. Transport costs also fell more sharply in September compared to the previous month.

Other factors contributing to the lower inflation included slower increases in housing, water, electricity, gas, and other fuels; alcoholic beverages and tobacco; clothing and footwear; furnishings, household equipment, and routine household maintenance; information and communication; recreation, sport, and culture; education services; restaurants and accommodation services; and personal care and miscellaneous goods and services.  

Food inflation eased to 1.4 percent in September 2024 from 4.2 percent in August 2024. Rice prices experienced a significant decline, falling from 14.7 percent in August to 5.7 percent in September.

Core inflation, which excludes selected food and energy items, also slowed down to 2.4 percent in September 2024 from 2.6 percent in the previous month.

The government remains steadfast in its commitment to stabilizing commodity prices as the country’s headline inflation hits a four-year low, according to the National Economic and Development Authority (NEDA).

“The continued slowdown in inflation is expected to boost consumer confidence, driving higher spending and consumption and fueling business expansion. Additionally, easing food prices will relieve low-income households, enabling them to allocate more to other essential needs such as education and health. We will sustain the momentum as we assure the public that we will continue to pursue and carry out strategies to maintain stable prices of food and other commodities,” said NEDA Secretary Arsenio Balisacan.

Balisacan highlighted the importance of Executive Order No. 62, issued by President Ferdinand R. Marcos Jr. in June 2024. The EO reduced rice tariffs to 15 percent to sustain sufficient rice supply and keep prices affordable amid rising global prices.

“While we expect lower tariffs to reduce rice prices, we should continuously support local production through increased agricultural funding to complement this short-term measure,” Balisacan said.

The Department of Agriculture (DA) has partnered with the Development Bank of the Philippines (DBP) to launch the Agri-Puhunan at Pantawid Program, offering low-cost credit facilities to 50,000 rice farmers. Each farmer is eligible for up to PHP58,000. The DA and DBP have initially secured PHP3.0 billion to implement the program.

Balisacan said the government is ready to address other inflationary pressures affecting food, such as the continuing prevalence of African Swine Fever (ASF), through the delivery of vaccines. Following the successful rollout of the ASF vaccine in Lobo, Batangas, the DA is set to expand vaccination efforts to La Union, Quezon, Mindoro, North Cotabato, Sultan Kudarat, and Cebu, with an additional 150,000 doses of the AVAC Vietnam vaccine for further testing.

The government’s chief economic planner also hailed the President’s signing of the Anti-Agricultural Economic Sabotage Act, which aims to eradicate hoarding, anti-competitive practices, and other illegal activities that increase the price of agricultural products.

“With the passage of this law, we protect our farmers and, at the same time, ensure that every Filipino has access to affordable food, which is vital in protecting the most vulnerable members of society while we work toward achieving inclusive economic progress,” Balisacan said.

He said the government is bracing for the impact of La Niña, which, according to PAGASA, started in September and is expected to persist until the first quarter of 2025.

Balisacan emphasized that the government’s strategies against La Niña should focus on protecting life and property. These may include improvements in early warning systems, utilization of communication systems to issue warnings upon dam openings, addressing the possible spread of diseases to livestock or people, and greater involvement of local government units in information dissemination.

“We want Filipinos, particularly vulnerable families, to be shielded from various shocks and continue to have access to affordable goods in the coming months as we protect the gains we have made and sustain our economic progress,” said Balisacan.