Headline inflation for October settled at 1.7 percent, the same as September, attributable to slower upticks in the food and beverages index that accounts for a big share in the domestic consumer price index (CPI).
According to the Philippine Statistics Authority (PSA) on Wednesday, last month’s inflation rate was slower than the previous year’s 2.3 percent, and brought the 10-month average to 1.7 percent, below the Bangko Sentral ng Pilipinas’ (BSP) 2 percent to 4 percent target band.
National Statistician Undersecretary Claire Dennis Mapa, in a briefing, said October’s inflation rate was driven by housing, water, electricity, gas and other fuels, at 2.7 percent from the previous month’s 2.1 percent; restaurants and accommodation services at 2.4 percent; and the food and non-alcoholic beverages index posted an annual uptick of 0.5 percent.
Core inflation, which excludes select food and energy items, slowed to 2.5 percent in October from the previous month’s 2.6 percent, but higher than the previous year’s 2.4 percent.
Asked for his outlook on the impact of the latest inflation results on domestic output, Mapa said this is expected to boost spending, going forward.
He said price drops for several items, such as rice, are positive for the inflation rate but noted the upside risks coming from prices of vegetables, due to weather disturbances, and pump prices.
“These are the items we are monitoring since these, in a way, would provide upward pressure in our inflation moving forward,” he said partly in Filipino.
ADDRESSING PRICE PRESSURES
For his part, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan, in a statement, said that the slower food inflation last month at 0.3 percent from the previous month’s 0.8 percent can be attributed partly to government measures to manage supply conditions and address price pressures.
Among these measures are the boost in rice supply in the past months and the Department of Agriculture’s (DA) decision to allow the importation of various vegetables to address the impact of weather disturbances on local supply.
“The steady headline inflation rate shows that our coordinated interventions are helping to maintain adequate supplies and keeping essential goods affordable,” he said. “We remain vigilant in managing risks from weather disturbances, global market volatility, and other domestic factors that may affect prices in the coming months.”
Balisacan also cited the benefits of Executive Order (EO) 100, which sets the floor price for palay (unhusked rice) to ensure fair returns to producers; and EO 101, which directs government agencies to fully implement the Sagip Saka Act, or Republic Act 11321, which institutionalizes the Farmers and Fisherfolk Enterprise Development Program.
“DEPDev welcomes the issuance of Executive Orders No. 100 and 101 as crucial interventions for food security. These policies help ensure fair returns for our farmers and fisherfolk, thus encouraging domestic production. In addition, other support services are being provided to improve the efficiency of post-production processing and distribution systems while we provide other measures to stabilize food prices and protect consumers,” he said.
PIA PHOTO