Rice inflation seen resuming downtrend as October inflation up slightly
Rice inflation is expected to go down in the next coming months despite being the top contributor to October's inflation which increased to 2.3 percent from 1.9 percent in September.
"Our expectation is that it has already reached its peak. We expect that it will go down... inflation rate and the price level per kilo in the coming months November and December," Philippine Statistics Authority (PSA) Undersecretary Dennis Mapa said in a press conference on Tuesday.
Rice inflation " started to peak in March 2024 at 24.4 percent'' until it reached 5.7 percent in September. In October, rice inflation rose to 9.6 percent, said Mapa.
Mapa explained that rice inflation in October was due to the base effect on the inflation of the same period of previous year.
"The reason here is that the price per kilo is going down but the base effect is because in October last year the rice inflation was low due to the price cap. So the price went down that month, so the base effect basically increased the inflation rate year on year," he said.
Mapa said based on the monitoring of PSA, the prices of regular milled rice dropped from P50.46 in Sept. to P50.22 in Oct. while the average price for well milled rice slightly lowered from P55.51 in Sept. to P55.28 in Oct. and P64.05 from Sept to P64.97 in October for special rice.
Following the onslaught of Severe Tropical Storm ''Kristine'' and Typhoon ''Leon'' last month, he said there was damage in agricultural products such as vegetables.
For eggplants, its inflation rate was 20.1 percent from negative 5.6 percent in September. Cucumbers had an inflation rate of 20.5 percent from negative in the previous months, said Mapa.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan assured that the country's inflation remains within the 2-4 percent target despite a slight uptick in October.
"The latest inflation figures confirm that we are on track to keep inflation within target. The government is fully committed to ensuring price stability and protecting Filipino households from undue shocks," he said.
Finance Secretary Ralph Recto noted that "the slight uptick in our October inflation rate was mainly caused by temporary factors, such as weather disturbances like Severe Tropical Storm Kristine and Super Typhoon Leon."
"We are on top of ensuring that the affected communities get the help that they need to recover faster from the recent disasters. In fact, the President has mobilized all agencies to quickly deliver relief, rehab, and assistance,” he added. Robina Asido/DMS
