Photo credit: NPDC

The Philippines saw a slight rise in inflation this October, with the rate moving up to 2.3% from September’s 1.9%. While this might not sound huge, it’s a shift that catches our attention, especially when it comes to essentials like food and transport. Let’s break down the reasons behind this increase and what it means for the rest of the year.

Food and Drinks: The Big Movers

The main driver for October’s inflation hike? Food and non-alcoholic drinks. Inflation in this category jumped to 2.9%, nearly double September’s rate of 1.4%. Key contributors included rice prices, which surged by 9.6% as well as corn and certain vegetables. In fact, food inflation alone rose to 3.0%, putting a strain on everyday shopping budgets.

But it’s not just the grocery aisle. Although transport costs still showed a yearly drop, the rate of decrease slowed down, adding a little more pressure to October’s overall inflation.

Areas with a Bit of Relief

Not everything went up in October. Some categories, such as alcoholic beverages and tobacco, housing and utilities, and restaurants saw slight dips in inflation rates. In Metro Manila (NCR), inflation even slowed down to 1.4% thanks to decreases in housing and utility costs, and a bigger drop in transport costs.

Outside Metro Manila: A Different Story

Inflation outside NCR rose to 2.6% from September's 2.0%, driven mainly by a hike in food prices. Region VI (Western Visayas) topped the inflation rate at 3.9%, while the Cordillera Administrative Region enjoyed the lowest rate at 1.4%.

Where Are We Heading?

For the year, inflation remains moderate compared to 2023, which saw higher rates. But with October’s uptick, there’s a hint that inflation pressures aren’t quite behind us. Key to watch will be any ongoing shifts in food prices and transport, both of which weigh heavily on household budgets.

In summary, while the October rise might feel manageable, it’s a reminder of the fluctuations that impact daily costs and may influence spending for the months ahead.