BUSINESS
Advocates Philippines
Philippine Inflation Hits 20-Month Low At 4.1%
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The Philippines experienced a notable slowdown in inflation, recording a mere 4.1 percent in November. This marks the lowest inflation rate in the past 20 months since March 2022, according to the National Economic and Development Authority (NEDA).
The NEDA attributes this significant drop to the timely execution of strategies aimed at stabilizing food supply amid anticipated domestic and external challenges in the coming months.
The Philippine Statistics Authority's report reveals a further easing of inflation in November to 4.1 percent from 4.9 percent in October, driven by the continued deceleration of both food and non-food prices. The year-to-date inflation rate now stands at 6.2 percent.
The decline in overall inflation last month is primarily attributed to a decrease in food inflation to 5.8 percent from 7.1 percent in October. Notable contributors to this downturn include deflation in vegetables (-2.0% from 11.9%) and lower inflation in various categories such as fish, meat, sugar, bread, cereals, and fruits.
Non-food inflation also saw a further decrease to 2.9 percent from 3.4 percent in October, resulting from deflation in transportation and slower inflation in restaurant and accommodation services.
NEDA Secretary Arsenio M. Balisacan expressed confidence in the government's interventions, emphasizing the importance of trade policies to manage inflation effectively and protect the purchasing power of Filipino families, especially those in vulnerable sectors.
However, Balisacan cautioned that the government must continue monitoring the inflation situation due to ongoing price pressures stemming from geopolitical tensions and extreme weather conditions, adding an element of uncertainty.
To ensure sufficient supply and stable prices of rice, the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) sub-committee on food inflation proposed maintaining lower tariff rates on rice, corn, and swine meat. Balisacan stressed the need for differentiated support to agricultural producers based on the potential impact of El Niño, along with measures to reduce transport and delivery costs.
With the Philippines facing a strong El Niño, projected to intensify until the second quarter of 2024, potential disruptions in food production and energy generation loom. Efforts are underway to exempt agriculture delivery trucks from toll increases, and fuel subsidies have been provided to over 166,000 public utility vehicles to mitigate energy- and fuel-related inflationary pressures.
To protect the most vulnerable sectors from high food prices, the Department of Social Welfare and Development launched the "Walang Gutom 2027: Food Stamp Program," providing monetary assistance to low-income households. Balisacan highlighted the importance of effective implementation of these programs to minimize the impact of high prices on low-income households.
The government is also focusing on strategies and programs to enhance local food production, supply, and the productivity of farmers through investments in irrigation, flood control, supply chain logistics, and climate change adaptation.
The NEDA attributes this significant drop to the timely execution of strategies aimed at stabilizing food supply amid anticipated domestic and external challenges in the coming months.
The Philippine Statistics Authority's report reveals a further easing of inflation in November to 4.1 percent from 4.9 percent in October, driven by the continued deceleration of both food and non-food prices. The year-to-date inflation rate now stands at 6.2 percent.
The decline in overall inflation last month is primarily attributed to a decrease in food inflation to 5.8 percent from 7.1 percent in October. Notable contributors to this downturn include deflation in vegetables (-2.0% from 11.9%) and lower inflation in various categories such as fish, meat, sugar, bread, cereals, and fruits.
Non-food inflation also saw a further decrease to 2.9 percent from 3.4 percent in October, resulting from deflation in transportation and slower inflation in restaurant and accommodation services.
NEDA Secretary Arsenio M. Balisacan expressed confidence in the government's interventions, emphasizing the importance of trade policies to manage inflation effectively and protect the purchasing power of Filipino families, especially those in vulnerable sectors.
However, Balisacan cautioned that the government must continue monitoring the inflation situation due to ongoing price pressures stemming from geopolitical tensions and extreme weather conditions, adding an element of uncertainty.
To ensure sufficient supply and stable prices of rice, the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) sub-committee on food inflation proposed maintaining lower tariff rates on rice, corn, and swine meat. Balisacan stressed the need for differentiated support to agricultural producers based on the potential impact of El Niño, along with measures to reduce transport and delivery costs.
With the Philippines facing a strong El Niño, projected to intensify until the second quarter of 2024, potential disruptions in food production and energy generation loom. Efforts are underway to exempt agriculture delivery trucks from toll increases, and fuel subsidies have been provided to over 166,000 public utility vehicles to mitigate energy- and fuel-related inflationary pressures.
To protect the most vulnerable sectors from high food prices, the Department of Social Welfare and Development launched the "Walang Gutom 2027: Food Stamp Program," providing monetary assistance to low-income households. Balisacan highlighted the importance of effective implementation of these programs to minimize the impact of high prices on low-income households.
The government is also focusing on strategies and programs to enhance local food production, supply, and the productivity of farmers through investments in irrigation, flood control, supply chain logistics, and climate change adaptation.
Dec 5, 2023
