Photo credit: DOF

Finance Secretary Ralph G. Recto assures us that inflation is not just manageable but on a steady downward trajectory. At a press briefing in Malacañan Palace today, September 24, 2024, Recto shared that inflation is expected to dip further, with the rate projected to drop to 2.5% in September, down from 3.3% in August. That means, for the entire year, inflation is expected to hover around 3.4%, comfortably within the government’s target band—and way below the global average of 5.9% for 2024.

“We had a briefing by NEDA with the President, and the good news is that inflation is on a downward trend. We’re on track with regard to the inflation target for September. I think everything is manageable,” Recto shared confidently.

But here’s something that might make your holiday cheer a little brighter—Recto also reassured everyone that we have enough rice and ham for the holidays.

Recto assured that Filipinos can expect some relief from rising costs thanks to government interventions like lowering tariffs on rice, improving agricultural productivity, and rolling out social protection programs. The Finance Secretary also noted that efforts to manage non-food inflation—like staggering electricity rate hikes—are being ramped up to protect consumers.

Recto also acknowledged that global risks like geopolitical tensions are still on the radar. Still, he’s confident the downward trend in inflation will also boost economic growth and create more jobs. This sets the stage for the Bangko Sentral ng Pilipinas (BSP) to possibly lower policy rates, which means cheaper borrowing costs for businesses, the government, and ordinary Filipinos.

During the briefing, Agriculture Secretary Francisco Tiu Laurel, Jr. also shared updates following the Cabinet meeting on managing both food and non-food inflation. Overall, the message was clear: the government’s efforts are working, and there’s optimism that inflation will remain in check as we close out the year.