Philippine inflation hits 4-year low of 1.9%
The Philippine Statistics Authority (PSA) said Friday September inflation eased to a four-year low of 1.9 percent from 3.3 percent in August as rice prices went down.
This was the lowest level since May 2020’s 1.6 percent.
This recent figure brings the year-to-date inflation to 3.4 percent, within the government’s target range of 2 to 4 percent and broadly consistent with inflation trends in other ASEAN economies.
Rice inflation dropped significantly to 5.7 percent from 14.7 percent the previous month. Meanwhile, a steady supply of high-value crops amid favorable weather conditions reduced vegetable prices (-15.8 percent from -4.3 percent).
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan highlighted the importance of Executive Order No. 62, issued by President Ferdinand Marcos Jr. in June.
The EO reduced rice tariffs to 15 percent to sustain sufficient 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 explained.
“The continued slowdown in inflation is expected to boost consumer confidence, driving higher spending and consumption and fueling business expansion,'' said Balisacan.
''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 Balisacan. NEDA Public Affairs
