MANILA: Inflation continued to settle within the government’s 2 to 4 percent target despite a slight uptick in October this year. In a briefing on Tuesday, National Statistician Dennis Mapa reported that headline inflation during the month was at 2.3 percent, slightly higher than the 1.9 percent recorded in September this year. Inflation in October last year was higher at 4.9 percent. The latest data brings the national average inflation rate from January to October 2024 to 3.3 percent.

According to Philippines News Agency, Mapa indicated that the higher inflation in October was mainly driven by a faster increase in food and non-alcoholic beverages, rising to 2.9 percent from 1.4 percent in September 2024. Despite this increase, the National Economic and Development Authority (NEDA) and the Bangko Sentral ng Pilipinas (BSP) are optimistic that inflation will remain within the target this year. NEDA Secretary Arsenio Balisacan assured the public that recent weather disturbances posed challenges to the country
‘s food supply and logistics, but the government is committed to keeping food available and prices steady.

Balisacan mentioned that the Department of Social Welfare and Development is implementing a program to provide social safety nets and capacity-building measures to support communities affected by natural disasters. The Philippine Atmospheric, Geophysical, and Astronomical Services Administration forecast that La Niña will persist until the first quarter of 2025, with several tropical cyclones expected to impact the country.

In a separate statement, the BSP noted that the October inflation is within its forecast range of 2.0 to 2.8 percent. The BSP stated that this is consistent with their assessment that inflation will trend closer to the lower end of the target range due to easing supply pressures for key food items, particularly rice. The BSP highlighted potential adjustments in electricity rates and higher minimum wages as upside risks to the inflation outlook.

Department of Finance (DOF) Secretary
Ralph Recto emphasized the government’s efforts to maintain inflation within the target. He cited temporary factors such as weather disturbances as the primary cause of the slight uptick in October’s inflation rate. Recto also noted that rice inflation accelerated but expects it to be temporary due to base effects from a price ceiling imposed last year.

House Ways and Means Committee Chair Joey Salceda expressed optimism that the full-year inflation rate would remain on target, supported by a 10-month average of 3.3 percent. Salceda credited President Ferdinand R. Marcos Jr.’s recent policy on rice tariff reduction as a significant factor in stabilizing prices while maintaining farm incomes. He highlighted other positive developments in food prices and stressed the importance of structural improvements in agriculture for further price stability.