HEADLINE inflation eased to 4.9 percent in October this year from 6.1 percent in September, the Philippine Statistics Authority (PSA) reported yesterday.
Last month’s headline inflation rate was also lower than the 7.7 percent recorded in October last year.
Core inflation, which excludes volatile oil and food items, was also down to 5.3 percent from 5.9 percent in September.
National Statistician Dennis Mapa, in a briefing, said the downtrend was due to the slower year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 7.0 percent in October from 9.7 percent in September.
Mapa said the deceleration of inflation was primarily brought about by the lower annual growth of vegetables, tubers, plantains, cooking bananas and pulses at 11.9 percent from 29.6 percent in September.
Lower year-on-year growth rates were also seen in other food groups such as flour, bread, and other bakery products; meat and other parts of slaughtered land animals; fish and other seafood; sugar, confectionery and desserts; and ready-made food and other food products.
Rice inflation also slowed to 13.2 percent from 17.9 percent the previous month.
Mapa said the average price of regular-milled rice went down to P45.40 per kilogram (kg) from P47.50 per kg in September.
For well-milled rice, the average price also declined to P51 per kg from P52.70 per kg the previous month.
“If we don’t see any supply shocks, our outlook is inflation will go down [for the remaining months of 2023],” Mapa said.
The restaurants and accommodation services, with an inflation rate of 6.3 percent in October from 7.1 percent in September 2023, also contributed to the downtrend of the headline inflation.
Year-to-date, headline inflation settled at 6.4 percent while core inflation was at 7.0 percent.
In a separate statement, the National Economic and Development Authority (NEDA) said the government will continue to help the most vulnerable sectors as El Niño or the long dry spell is expected to linger until mid-2024.
“As inflation eases, it is crucial to continue monitoring the prices of commodities, particularly food, transportation, and energy, amid global challenges such as geopolitical uncertainties and El Niño,” NEDA secretary Arsenio Balisacan said.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) earlier said the country is experiencing a moderate El Niño.
This is expected to bring in below-normal rainfall across the country and may adversely impact agriculture production and energy generation. (PNA)/PN
