Inflation in the Philippines went down to 3.3% this past August, according to a Philippine News Agency (PNA) news article.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
Headline inflation slowed to 3.3 percent in August this year from 4.4 percent in July due to the decrease in food inflation, the Philippine Statistics Authority (PSA) said.
In a briefing Thursday, National Statistician Dennis Mapa said the headline inflation last month was also lower than the 5.3 percent recorded in August 2023.
The latest data brought the year-to-date headline inflation to 3.6 percent which is within the government’s 2 to 4 percent target.
Mapa said the downtrend in the overall inflation in August was primarily brought about by the slower annual increment of food and non-alcoholic beverages at 3.9 percent from 6.4 percent in July.
In particular, food inflation eased to 4.2 percent from 6.7 percent.
The reduction was due to the decline in rice inflation which went down to 14.7 percent from 20.9 percent in July. It was the lowest rice inflation recorded since the 13.2 percent recorded in October 2023.
Rice inflation is expected to go down to a single-digit level this month due to base effects, Mapa said.
Vegetables, tubers, plantains, cooking bananas, and pulses meanwhile, which recorded a year-on-year decline of 4.3 percent in August from 6.1 percent increase in July, also contributed to the slowdown in food inflation.
Lower inflation rates were likewise noted in flour, bread, and other bakery products, pasta products and other cereals, 2.4 percent from 2.6 percent; meat and other parts of slaughtered land animals, 4.0 percent from 4.8 percent; and ready-made food and other food products not elsewhere classified, 5.5 percent from 6.0 percent.
Core inflation meanwhile, which excludes selected food and energy items, slowed down to 2.6 percent in August 2024 from 2.9 percent in the previous month.
In a separate statement, the National Economic and Development Authority (NEDA) said the continued easing of inflation and stable prices would significantly benefit households and businesses and will promote increased consumer spending and stimulate economic activity.
“The sustained easing of inflation will support growth in household consumption, which elevated prices have long suppressed. Low-income households will benefit from the decline in food inflation, as food constitutes more than half (51.4 percent) of the consumption of the bottom 30 percent of households,” NEDA Secretary Arsenio Balisacan said.
“Moreover, as businesses have identified persistent inflationary pressure as a significant concern, the recent stability and moderation in inflation will encourage investments, especially as borrowing costs are declining. Most importantly, the appetite for business expansion will improve as consumer spending increases,” he added.
Balisacan noted however that while inflation continues to trend downward, primarily due to reduced import tariffs on rice, potential pressures could emerge from higher electricity rates and above-normal weather disturbances.
“The government is prepared to address these pressures to ensure stable inflation. Preparations to counter the effects of the La Niña phenomenon are underway, including improvements in early warning systems, the utilization of communication systems to issue warnings about dam openings, measures to address the potential accelerated speed of livestock diseases, and greater involvement of local government units in information dissemination, are in progress. Notably, the government has allocated PHP15 billion for national risk reduction in 2024,” Balisacan said.
Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think that inflation won’t hit 4% over the remaining months of the year?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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