Manila: The government will intensify efforts to stabilize supply and prices amid weather disturbances, the Department of Economy, Planning, and Development (DEPDev) said Tuesday. DEPDev made the statement after the reported slight uptick in consumer prices in September.
According to Philippines News Agency, the Philippine Statistics Authority (PSA) reported that headline inflation settled at 1.7 percent in September, slightly higher than the 1.5 percent seen in August. The latest data brought the January to September average inflation rate to 1.7 percent, which is still below the 2 percent lower end of the government’s 2 percent to 4 percent target.
The PSA attributed the uptrend in inflation to the annual increase of the transport index at 1 percent in September 2025 from an annual decline of 0.3 percent in August 2025. Also contributing to the uptrend in the overall inflation was the higher annual increment in the food and non-alcoholic beverages index at 1 percent in September from 0.9 percent in the previous month.
Food inflation rose by 0.6 percent from 0.6 percent in August, mainly driven by higher prices of vegetables, tubers, plantains, cooking bananas, and pulses. Vegetable inflation rose sharply to 19.4 percent from 10 percent, mainly due to the successive weather disturbances in key production areas. Meat inflation, however, eased to 6 percent from 7.1 percent as both chicken and pork prices moderated. Rice continued to record deflation at 16.9 percent from -17 percent, reflecting lower farmgate and international prices despite reduced import arrivals following the rice import ban.
DEPDev Secretary Arsenio Balisacan noted that the September figures point to manageable price movements despite recent supply-side pressures. He emphasized the government’s commitment to securing adequate food supplies and tempering price pressures. To achieve this, imports of select vegetables, among them carrots, onions, and broccoli, will be allowed as part of stabilization measures.
Balisacan mentioned that the Department of Agriculture will establish food corridors to minimize supply disruptions. These will feature greenhouses, storage, and post-harvest facilities to strengthen the resilience of food systems. On rice, he indicated that the Marcos administration is pursuing long-term policy measures aimed at ensuring fair income for farmers, keeping rice affordable for consumers, and maintaining macroeconomic stability.
In a separate statement, the Bangko Sentral ng Pilipinas (BSP) projected that inflation is expected to average below the low end of the target range in 2025, primarily due to the easing of rice prices in previous months. The outlook for inflation remains broadly unchanged for 2026 and 2027, expected to settle within the 3.0 percent plus 1.0 percentage point target range. However, higher rice tariffs and rising global food prices could raise supply-side pressures over the policy horizon.
The BSP also noted that while domestic demand remains firm, the impact of US policies on global trade and investment continues to weigh on global economic activity, potentially tempering the outlook for the Philippine economy. The upcoming policy meeting will involve a review of newly available information and reassessment of the impact of prior monetary actions in light of evolving economic conditions and their implications for inflation and growth.
