Inflation further cools in September at 1.9%

Metro Manila, Philippines — The rate of price increase on goods and services substantially dipped further in September, the slowest since May 2020, mainly driven by low food prices.

The inflation rate eased to 1.9% in September from 3.3% in August, data from the Philippine Statistics Authority (PSA) showed Friday, Oct. 4.

At year-to-date, the average headline inflation was pegged at 3.4% within the government target range of 2% to 4%.

National Statistician Dennis Mapa said September inflation was the lowest since the 1.6% in May 2020.

Main contributors to the slowdown were food and non-alcoholic beverages, transport, and the sector of housing, water, electricity, gas and other fuels.

“Kung titingnan natin ‘yong individual items or some group of items meron talagang bumagsak, negative, ibig sabihin talagang bumaba ang presyo niya,” Mapa said. “Ang example nito transport, gasolina, diesel, kamatis.”

[Translation: If we look at the individual items or some of the group of items, there were prices that went down. The examples included transport, gasoline, diesel, and tomatoes.]

Based on PSA data, Metro Manila inflation print slowed to 1.7% in September, while areas outside the capital region cooled to an average of 2%. Ilocos region had the lowest rate at 0.6%

Rice inflation at single digit

Rice inflation dropped to 5.7% from 14.7% in the previous month, the first single-digit for the year, PSA data showed.

Mapa said January’s rate of increase in rice prices was at 22.6%.

“Of course mas mababa ito sa previous months,” Mapa said. “The last time that it was lower than this number, recent lang, noong July 2023 naitala sa 4.2% for the rice inflation.”

[Translation: Of course this was lower than previous months. The last time that it was lower than this number was July 2023 at 4.2%.]

“Nakita natin na mataas talaga kaya meron pa ring year-on-year na increase kasi mas mataas ang presyo ngayon kumpara last year but month-on-month we are seeing already a reduction,” he said. “Kaya nagpapakita ‘yong negative inflation month-on-month.”

[Translation: We see a substantial increase year-on-year because prices this year were higher than last year, but month-on-month we are already seeing a reduction. We witness negative inflation month-on-month.]

President Ferdinand Marcos Jr. in June issued Executive Order No. 62 that halved the tariff on rice imports to 15% from 35% in a bid to lower prices of the grain.