inflation – Page 4 – Author Carlo Carrasco

Philippines tourism revenue for January 2025 exceeds P65 billion

March 16, 2025March 6, 2025carlocarrasco

Based on the tourism revenue counted for the month of January 2025, Philippines tourism is off to a strong start with more than P65 billion, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

The Philippines earned USD1.1 billion or PHP65.3 billion tourism revenues in January 2025, exceeding pre-pandemic levels in 2019, the Department of Tourism (DOT) said Thursday.

Data as of Feb. 28 showed that the earnings came from various activities, products, and services related to tourism, 136.1 percent higher than the USD821 million or 151.46 percent higher than the PHP43 billion recorded in January 2019.

“The recovery of Philippine tourism from the period of the pandemic in terms of revenues translates to thousands of jobs created for Filipinos, providing livelihood opportunities for many, especially in our rural and underserved areas,” Tourism Secretary Christina Garcia-Frasco said in a news release.

The country’s tourism income grew by 71.4 percent in terms of US dollars, compared to the USD652,255,773.51 recorded in January 2024.

Philippine peso revenues also soared by 78.81 percent from PHP36,508,238,043 in January 2024.

Frasco reported the Philippines achieved an all-time high tourism revenue of approximately PHP760 billion in 2024.

The DOT recorded the Philippines’ tourism revenues based on Visitor Sample Surveys, records from the previous arrival/departure cards, shipping manifests, and the current eTravel system.

A total of 1,167,908 foreign travelers visited the country in the first two months of 2025. Data as of March 1 showed that about 25.31 percent of the visitors came from South Korea.

South Korea has been the country’s top source of tourists since 2023, which is expected to boost further with the appointment of South Korean star Seo In-Guk as “celebrity tourism ambassador for the Philippines” last month.

While the P65.3 billion tourism revenue for January 2025 looks great for the Philippines, it remains to be seen if it could maintain the pace until the end of the year. In order to match the record P760.5 billion tourism revenue of 2024, the Philippines needs to attract P63.375 billion per month this year. If Philippine tourism can achieve P65 billion per month, that would translate to P780 billion by the end of the year.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines will be able to gross more than P760.5 billion in tourism revenue this year? Has your local government unit (LGU) been active in promoting local tourism?

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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Philippines February 2025 inflation settles at 2.1%

March 14, 2025March 5, 2025carlocarrasco

Recently, the Philippine Statistics Authority (PSA) announced that the inflation rate of February 2025 settled at 2.1% primarily due to the easing of rate of price increases on non-alcoholic beverages and food, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

Inflation in February this year slowed down to 2.1 percent from 2.9 percent in January mainly due to the easing of rate of price increase of food and non-alcoholic beverages, the Philippine Statistics Authority (PSA) reported.

In a press briefing Wednesday, PSA Assistant Secretary Divina Gracia del Prado said the declaration of food security emergency by the Department of Agriculture (DA) to bring down cost of rice has been effective in taming the inflation last month.

Inflation of food and non-alcoholic beverages, which contributed 58.8 percent to the overall inflation last month, declined to 2.6 percent from 3.8 percent in January.

Cereal and cereal products, which include rice, had a deflation of 3 percent in February from a deflation of 1.1 percent in January.

“For me, I think, we are seeing the effect of food security emergency in our inflation… Because of this food security emergency, we have released the rice buffer from NFA (National Food Authority) to LGUs (local government units), and of course in Kadiwa Rice for All program,” del Prado said.

Rice alone had a sharper deflation of 4.9 percent, with prices decreasing since July 2024 due to easing international prices and tariff reduction. Vegetable inflation plunged to 7.1 percent in February from a 21.1 percent inflation in January.

Aside from food and non-alcoholic beverages, main contributors to the deceleration of inflation in February were housing, water, gas, and other fuels, which inflation eased to 1.6 percent from 2.2 percent in January, and transport, which recorded a deflation of 0.2 percent from 1.1 percent inflation rate

Meanwhile, major contributors to inflation in February were food and non-alcoholic beverages, mainly due to higher prices of pork, with inflation increasing to 12.1 percent in February from 8.4 percent in January; restaurants, café and the like; poultry meat; rentals; and higher cost of passenger transport by sea.

In a separate statement, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the government stands ready to combat high inflation through its policies and programs.

“The government will sustain its efforts to keep inflation low and manageable to protect the purchasing power of Filipinos. As we expect six to 13 typhoons to develop from March to August 2025, the Department of Agriculture (DA) will implement the La Niña action plan to restore agricultural productive capacity in areas likely to be affected by continuous rainfall, flooding, and landslides,” Balisacan said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the inflation rate will fall below 2% by the end of March 2025? If you have been shopping for food lately, did you notice significant movements on prices?

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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New investments worth P23.5 billion from Japanese companies pledged in connection with CREATE MORE

March 10, 2025March 6, 2025carlocarrasco

With the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act already in effect, more than P23 billion in new investments was pledged by Japanese companies in connection with it, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

Department of Trade and Industry (DTI) Secretary Ma. Cristina Roque said Wednesday the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law has attracted Japanese companies to invest in the country.

Roque and Special Assistant to the President for Economic Affairs and Investments Secretary Frederick Go visited Japan from March 3 to 4 to meet Japanese companies and business groups.

The DTI said during the visit, four companies pledged PHP23.5 billion worth of investments.

“Representing both the government and private sectors, those we engaged with expressed excitement and enthusiasm about collaborating with us, inspired by the positive developments they’ve heard about our country—our robust economic fundamentals and reformed policies and regulations,” Roque said.

“Specifically, what caught their attention was the recently enacted CREATE MORE law, which offers enhanced tax incentives, simplified processes, and greater opportunities for businesses to thrive in the Philippines,” she added.

Among Japanese companies that the Philippine government officials met include Ibiden Co., Ltd., Nidec Corp. and Sumitomo Corp.

The Philippine Trade and Investment Center (PTIC)-Tokyo told the Philippine News Agency that two of these companies are eyeing fresh investments in the country, while one of them is updating its three-year investment pledge.

DTI said Ibiden expressed its prospect for expanding its advanced substrate technologies operations, while Nidec eyes to expand its manufacturing footprint here.

On the other hand, Sumitomo renewed its commitment to collaborate with the Marcos administration’s infrastructure and clean energy goals.

Sumitomo’s project in the Philippines include the Metro Manila Subway Project, the MRT Line 3 maintenance contract, and the First Philippine Industrial Park.

Roque also had meetings with Fast Retailing Co. Ltd., the firm behind clothing brand Uniqlo, as well as the Japan Association of Corporate Executives (Keizai Doyukai) and the Japan Business Federation (Keidanren).

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the new investments pledged by Japanese companies in connection with CREATE MORE will influence many other foreign companies to invest in the Philippines this 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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Philippines attracts less than 6 million foreign tourists in 2024, points to tourism revenue for success

January 16, 2025January 7, 2025carlocarrasco

When it comes to the state of tourism in 2024, the Philippines achieved a mixed record by failing to reach its declared target of 7.7 million international visitors while still managing to achieve a new, all-time record with P760.5 billion in tourism revenue, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

Philippine tourism earned an all-time high revenue of PHP760.5 billion in 2024, translating to a 126.75 percent recovery rate from the 2019 pre-pandemic levels.

Revenues from inbound tourism expenditures — representing the total amount spent by non-resident visitors — were 9.04 percent higher compared to the PHP697.46 billion in 2023.

Department of Tourism (DOT) data showed earnings surpassed the estimated PHP600.01 billion in 2019 by an impressive 26.75 percent.

“With these figures, it is clear that the Philippine tourism industry is not only bouncing back but also evolving and expanding, contributing significantly to the nation’s economic stability and growth. In the past year, we have witnessed remarkable growth in tourism revenue, which has surpassed previous records,” Tourism Secretary Christina Frasco said Monday.

“This achievement is not just a statistic. It translates to thousands of jobs created for Filipinos, fostering economic resilience and enabling families to thrive,” she added.

She attributed this growth to the pro-tourism policies of the Marcos administration that prioritized the sustainable development of Philippine tourism resources.

“These policies focus on enhancing infrastructure, promoting heritage conservation and investing in skills development programs for our workforce, among others. We believe that the growth of tourism should be inclusive and equitable, empowering local entrepreneurs and communities,” she said.

Based on the World Travel and Tourism Council data, international tourists spend at least USD2,073 per capita.

From an average of nine nights in 2019, tourists are now staying an average of over 11 nights in the country, while 70 percent are repeat visitors.

Continued collaboration with stakeholders from the private sector also garnered about 63.18 percent repeat visitors in 2023, the DOT said.

Tourist arrivals – While falling short of its original target of 7.7 million, the DOT said the country still recorded growth in the number of foreign visitors last year at 5,949,350, up by 9.15 percent from the 5.45 million foreign guests recorded in 2023.

South Korea maintained its position as the top source of foreign tourists, with arrivals increasing to 1,574,152 from 1,455,977 in 2023, garnering more than 26.46 percent of the total market share.

Frasco cited the country’s “effective strategic marketing initiatives, enhanced air connectivity and strengthened cultural exchanges” for the sustained number of Korean tourists to the Philippines.

“Furthermore, the Philippines’ growing reputation as a prime destination for incentive travel has played a key role in this positive trend, attracting an increasing number of Korean companies hosting their reward trips for their employees in the Philippines’ world-class tourist destinations,” she said.

The United States ranked second, with 1,076,663 visitors in 2024, increasing from 1,041,305 in 2023. Enhanced connectivity, including nonstop flights from San Francisco to Manila by United Airlines and from Seattle to Manila by Philippine Airlines contributed to the growth of the market.

Japan, meanwhile, emerged as a standout market with a 22.84 percent growth in arrivals, reaching 444,528 visitors from its previous year’s 361,862.

The surge was attributed to aggressive tourism campaigns and strategic partnerships with Japanese travel agencies that paved further awareness and interest in the Philippines as a travel destination.

Though significantly lower than the pre-pandemic figures, China showed signs of recovery with 313,856 arrivals compared to 264,922 in the previous year.

This can be attributed, the DOT said, to the increased number of flights from 2023, both commercial and chartered, including the first half of 2024, connecting China directly to Cebu, Bohol, and Davao.

Cruise ships also started to arrive during the second half of 2024, with the new visa waiver program becoming an important factor for the improved numbers.

Other consistent contributors included Australia (299,286) and Canada (269,300). Emerging markets like Taiwan and Singapore demonstrated strong growth momentum, with arrivals reaching 213,833 and 198,471, respectively.

The introduction of direct flights to Kalibo in Aklan and Puerto Princesa in Palawan, as well as the growth of niche markets such as English as Second Language (ESL) learning and diving, contributed greatly to the visits of guests from Taiwan.

The United Kingdom likewise sustained its position among the top contributors with 178,656 visitors, driven by a keen interest in heritage tourism and adventure activities. Meanwhile, Malaysia emerged 10th with 99,881 registered arrivals in 2024.

The DOT said the Middle Eastern market similarly showed promising signs of recovery in 2024.

The United Arab Emirates (UAE) posted a remarkable 668.34 percent recovery rate from its 2019 figures, reflecting increased air connectivity and a surge in interest in the Philippines as a leisure destination. Qatar followed closely, with an impressive 832.87 percent recovery rate, and Saudi Arabia with 66.54 percent growth.

Likewise, Oman and Bahrain registered more than 200 percent recovery rates from the 2019 number of arrivals, the DOT said.

Those in the top 25 source markets which have fully recovered as compared with 2019 data included Australia (102.63 percent), Canada (109.26 percent), Hong Kong (106.79 percent), UAE (668.34 percent), Italy (143.02 percent), Spain (111.08 percent), Guam (200.19 percent), New Zealand (100.50 percent) and Switzerland (102.01 percent).

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think it is safe to call 2024 a successful year of tourism for the Philippines with regards to the record-high tourism revenue achieved? Do you think the Philippines will be able to attract at least 6 million foreign tourists this 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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Maharlika Investment Corp. (MIC) to make first investment this quarter

January 15, 2025January 7, 2025carlocarrasco

The Maharlika Investment Corp. (MIC) – the entity responsible for making investments on behalf of the Philippines – will be making its first investment within the first quarter of 2025, according to a BusinessWorld news report. Take note that it has been over eighteen months since the Maharlika Investment Fund was formally signed into law. The IRR (implementing rules and regulations) has already been finalized.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

THE MAHARLIKA Investment Corp. (MIC) is expected to make its first investment this quarter, most likely in the energy sector, its top official said.

“Definitely the first quarter. I think we had a year to set up. We had a year to basically put our governance in place. We obtained our formal approval to begin hiring last end of July,” MIC President and Chief Executive Officer Rafael D. Consing, Jr. said in an interview with BusinessWorld on Jan. 2.

The MIC has yet to make any investments since President Ferdinand R. Marcos, Jr. signed the law creating the country’s first wealth fund in July 2023. The Maharlika Investment Fund (MIF) had initially committed to make its first investments before the end of 2024.

Mr. Consing said sovereign wealth fund is “ready” and backed with funding and the needed workforce, but will not invest “without the benefit of due diligence.”

MIC earned P2.3 billion in interest income in 2024, Mr. Consing said.

Under the law, the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines were mandated to contribute P25 billion and P50 billion, respectively, as the initial seed capital for the MIF. The two state lenders have remitted the funds to the Bureau of the Treasury in September 2023.

Mr. Consing said the MIC’s strategic plan will be up for board approval on Jan. 9. This after it made some changes after meeting with the Governance Commission for Government-Owned and -Controlled Corporations (GCG) before the holidays, he added.

The MIC is looking into investing in energy, food security, healthcare, and resource development, particularly mining.

“In the first quarter, that would be the energy sector. Healthcare, if it turns out okay, if our due diligence results turn out okay, first half. I would say early second quarter for the latter two,” Mr. Consing said.

Mr. Consing said he believes that investments in the energy sector, particularly transmission lines, would be “most impactful.”

“That’s why ideally, we’d like to be able to buy into the national grid, if we’re able to. Or number two, we have also separately signed MOUs (memoranda of understanding) with the likes of Mindoro and Palawan, which fall under the SPUGS [small power utilities group] category,” he said.

In 2024, the MIC signed an agreement with Occidental and Oriental Mindoro to support investments in critical energy infrastructure.

“There are about 34 SPUGS in the country. The two biggest are Mindoro and Palawan. And we believe that given the contribution of Palawan when it comes to tourism, and also the population that lives in there, and the potential contribution of Mindoro in respect to the entire electricity sector in the Philippines, we felt that these are two priority areas where we can help, in fact, build transmission lines,” he said.

However, Mr. Consing declined to comment on the MIC’s plan to invest in the National Grid Corp. of the Philippines (NGCP).

He said the National Power Corp. is currently doing an inventory of all its assets in Mindoro and MIC “will have to sit down and determine which part of those assets it would need as part of the expansion of these lines.”

“Where we are now is we’re procuring the services of the technical consultant and the team that will be putting together the whole feasibility study. Because all of these will require regulatory approval by the Energy Regulatory Commission,” he added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think that the MIC will be able to make smart decisions with regards to making the investments? Do you think the Maharlika Investment Fund will make positive impact on the market and encourage others to invest?

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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Philippines inflation hit 2.9% in December 2024, 3.2% for the entire year

January 14, 2025January 16, 2025carlocarrasco

In recent times, the inflation rate of the Philippines increased by 2.9% during the month of December 2024 which contributed to a final inflation result of 3.2% for the entire year, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

Inflation settled at 2.9 percent in December last year, bringing the 2024 average inflation rate to 3.2 percent, well within the government’s 2 percent to 4 percent target, the Philippine Statistics Authority (PSA) said.

In a briefing on Tuesday, National Statistician Dennis Mapa attributed the downtrend in the annual average inflation to the lower increase in the index of food and non-alcoholic beverages at 4.4 percent in 2024 from 7.9 percent in 2023. Food inflation, in particular, decelerated from 8 percent in 2023 to 4.5 percent last year.

According to Mapa, rice inflation also slowed to 0.8 percent, the lowest since January 2022.

“Iyong inflation rate sa bigas ay bumababa na. In fact, baka mayroon tayong expectation na maging negative na ‘yong inflation sa rice sa January (The rice inflation rate is going down. In fact, we expect negative rice inflation in January). That’s part of the good news,” he said.

The lower annual average inflation of housing, water, electricity, gas, and other fuels at 1.7 percent in 2024 from 4.9 percent in 2023, also contributed to the downtrend in 2024’s overall inflation.

Except for education services, the indices of other commodity groups recorded a downtrend in their annual average inflation in 2024 compared with 2023, with financial services recording an average decline of 0.6 percent in 2024 from a zero percent average inflation in 2023.

“The 3.2 percent average inflation rate in 2024 is a significant improvement from the 6 percent figure in 2023. Despite the risks we encountered throughout the year, our combined efforts to temper inflation have largely been successful. We will build upon this momentum as we commit to keep the inflation rate within our target range in 2025,” National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said in a separate statement.

“In pursuit of price stability, the Bangko Sentral ng Pilipinas maintains a calibrated approach to its monetary policy easing while the relevant agencies continue to pursue measures to ensure adequate food supply and affordable prices.“

NEDA noted that the government would continue to ramp up efforts to ensure water and food security amid climate risks.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are managing a business, did inflation have any severe impact on the finances of your business? Do you think inflation all over the Philippines will somewhat ease this 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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Philippines October 2024 inflation rate settles at 2.3%

November 14, 2024November 5, 2024carlocarrasco

Recently it was announced that the inflation rate of the Philippines for October 2024 settled at 2.3%, according to a Philippine News Agency (PNA) news article. By comparison, the nation’s inflation rate was at 4.9% in October 2023.

To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…

Inflation continued to settle within the government’s 2 to 4 percent target despite a slight uptick in October this year.

In a briefing on Tuesday, National Statistician Dennis Mapa said headline inflation during the month was at 2.3 percent, slightly higher than the 1.9 percent recorded in September this year. Inflation in October last year, however, was higher at 4.9 percent.

The latest data brings the national average inflation rate from January to October 2024 to 3.3 percent.

Mapa said the higher inflation in October was primarily influenced by the faster increase in food and non-alcoholic beverages at 2.9 percent from 1.4 percent in September 2024.

Despite the increase, the National Economic and Development Authority (NEDA) and the Bangko Sentral ng Pilipinas (BSP) are optimistic that inflation will remain within target this year.

“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,” NEDA Secretary Arsenio Balisacan said in a statement.

Balisacan assured the public that while recent weather disturbances posed challenges to the country’s food supply and logistics, the government will work “relentlessly to keep food available and prices steady, particularly for essential commodities.”

“With targeted support and streamlined food supply chains, we aim to ensure that food is affordable and accessible for Filipino families, especially those most vulnerable to price shocks when disasters hit us,” Balisacan said.

To mitigate the impact of natural disasters, Balisacan said the Department of Social Welfare and Development is implementing the Building on Social Protection for Anticipatory Action and Response in Emergencies and Disasters Program.

The program provides social safety nets and capacity-building measures to support affected communities.

The Philippine Atmospheric, Geophysical, and Astronomical Services Administration earlier forecast that La Niña will persist until the first quarter of 2025, with two to eight tropical cyclones expected to affect the country until April 2025.

“The President has mobilized all of government to ensure relief efforts are comprehensive and delivered on time. In addition, he has directed us to craft a robust solution to build the resilience of families and communities amid the onslaught of severe typhoons,” Balisacan said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the inflation rate of the nation will end up between 2% to 4% for the final two 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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IMF sees Philippine economy growing by more than 6% in 2025

October 11, 2024October 3, 2024carlocarrasco

Citing key factors in its research, the International Monetary Fund (IMF) predicts that the economy of the Philippines will expand by more than 6% in 2025, 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…

The Philippine economy successfully navigated multiple external headwinds in recent years and is expected to grow by over 6 percent next year, an International Monetary Fund (IMF) official said.

In a briefing at the Bangko Sentral ng Pilipinas office in Manila on Wednesday, IMF Mission Chief Eli Arbatli Saxegaard said the Philippines remained among the best performing economies in the region.

An IMF team led by Saxegaard held meetings in Manila from Sept. 18 to Oct. 2 to conduct discussions on the Philippine economy for the 2024 Article IV Consultation.

Saxegaard said the Philippine economy is projected to grow by 5.8 percent this year and will further accelerate to 6.1 percent in 2025.

“This pick-up in growth will be supported by more accommodative financial conditions and higher investment,” she said.

The latest projection, however, was lower than the 6 percent and 6.2 percent previous forecast for 2024 and 2025.

“The downward revision from our July forecast reflects our view that private consumption is going to grow slightly with less momentum. So I would like to highlight that the downgrade is very small, 0.2, and reflects the fact that the first half (of the year) private consumption growth was lower than what we had anticipated. And this might be in part driven by the high food prices,” Saxegaard said.

Despite the revision, Saxegaard said the Philippines continues to be one of the highest growing economies in the region.

“I would also like to highlight that the growth forecast for the Philippines remains one of the highest in the region. It’s 6.1 percent growth for 2025, is a very respectable growth rate… So it’s a very small adjustment reflecting the outturns the first half,” she said.

Downside risks to the country’s growth outlook include a slowdown in major economies that could disrupt trade and financial flows; commodity price volatility and supply shocks; and an escalation of geopolitical tensions or regional conflicts.

Easing of global financial conditions, or faster than anticipated private investment linked to public-private-partnerships and larger foreign direct investment inflows, on the other hand, could stimulate higher growth.

The IMF believes that the Philippine economy holds significant potential with its abundant natural resources, untapped blue economy, and a sizable demographic dividend.

Saxegaard, however, said that unlocking the medium-term growth potential will depend on structural reforms and strengthened social protection programs.

She said priority areas include upgrading infrastructure, making significant investments in healthcare and education, addressing land fragmentation and low productivity in agricultural sector, and enhancing governance.

Inflation, meanwhile, is projected to settle within the government’s target for both 2024 and 2025.

“We believe that the decisive monetary tightening and other measures have helped mitigate inflationary pressures in the Philippines, recent tariff cuts on imported rice and other non-monetary measures helped reduce food prices, and should further reduce headline inflation by the year end,” Saxegaard said.

“For this year, our expectation is that for inflation to average 3.3 percent, and for next year, 3 percent. That would be supported by lower food and core inflation remaining well within the target.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines still has momentum to grow better in 2025 than what the IMF predicted?

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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Philippines inflation down to 1.9% this past September, lowest since May 2020

October 7, 2024October 4, 2024carlocarrasco

The inflation rate of the Philippines fell down to 1.9% for the month of September 2024 which marks a 4-year-low, 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…

The country’s headline inflation further eased to 1.9 percent in September this year, the lowest recorded since the 1.6 percent in May 2020.

Headline inflation was at 3.3 percent in August and 6.1 percent in September last year.

In a briefing on Friday, National Statistician Dennis Mapa said the latest data brought the year-to-date inflation to 3.4 percent, which is well within the government’s 2 to 4 percent target.

Mapa said the downtrend in the overall inflation was due to the slower annual increase in food and non-alcoholic beverages at 1.4 percent from 3.9 percent in August.

Food inflation, in particular, eased to 1.4 percent in September from 4.2 percent the previous month.

Mapa said the deceleration in food inflation was due to the slower inflation rate of rice at 5.7 percent from 14.7 percent in August.

Other contributors to the lower food inflation include the faster decline in the inflation of vegetables, tubers, cooking bananas, and pulses.

Lower inflation rates were also reported for corn, flour, bread and other bakery products, meat and other parts of slaughtered land animals, and ready-made food and other food products.

In a separate statement, the National Economic and Development Authority (NEDA) assured the public that the government remains committed to stabilizing commodity prices.

“The continued slowdown in inflation is expected to boost consumer confidence, driving higher spending and consumption and fueling business expansion,” said NEDA Secretary Arsenio 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,” he added.

Balisacan said the Executive Order issued by President Ferdinand R. Marcos Jr., which reduced the rice tariffs to 15 percent, helped bring down rice 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 NEDA chief assured the public that 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.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the lower headline inflation will be helpful for local businesses that have been struggling with cutting down their expenses?

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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World Bank says that Philippines inflation will likely slow down this year

October 6, 2024October 4, 2024carlocarrasco

The World Bank (WB) recently announced that it sees inflation in the Philippines likely to go down this year and fall within the target range set by the Bangko Sentral ng Pilipinas (BSP), according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the BusinessWorld report. Some parts in boldface…

PHILIPPINE INFLATION is likely to slow this year to fall within the central bank’s target range, but higher transport charges and domestic rice production pose upside risks, the World Bank said.

In its latest monthly update, the World Bank said that the entry of more rice imports under lower tariffs should help keep inflation within the government’s 2-4% target.

“Inflation resumed its downward trend in August and is on track to fall within target this year,” the Washington-based lender said.

The consumer price index (CPI) eased to 3.3% in August from 4.4% in July. Inflation averaged 3.6% in the first seven months.

The Bangko Sentral ng Pilipinas (BSP) projects inflation to average 3.4% this year.

“The balance of risks to the outlook has shifted toward the downside given expected reductions in rice prices as more imports arrive under the reduced tariff regime,” the World Bank said.

An executive order cutting tariffs on rice to 15% from 35% took effect in July. This helped rice inflation ease to 14.7% in August from 20.9% in July.

However, the World Bank said higher transport and electricity charges, as well as possible global oil and food price shocks still provide upside risks to the inflation outlook.

“Domestic rice production and prices also remain vulnerable with the La Niña weather phenomenon expected to bring more rainfall and intense typhoons in the remaining months of the year,” World Bank said.

Meanwhile, the World Bank said recent external and domestic developments have given the BSP more space for policy easing.

“Peso appreciation, driven by a wider US interest rate differential, supports domestic disinflation. This gives more room for further normalization of domestic monetary policy,” it said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think inflation in the Philippines will continue to slow down as the end of 2024 approaches?

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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