Manila – The Philippine Statistics Authority (PSA) reported a decrease in the country’s headline inflation to 4.1 percent in November, the lowest since March 2022’s 4 percent.
According to Philippines News Agency, this rate marks a significant decline from the 8 percent inflation recorded in November last year and the 4.9 percent in October this year. Core inflation, excluding volatile items like oil and food, also fell to 4.7 percent from 5.3 percent in October. The PSA attributed the downward trend primarily to the reduced year-on-year growth rate of food and non-alcoholic beverages, which stood at 5.7 percent in November, down from 7 percent in October.
Contributing factors to the inflation reduction include a slowdown in food inflation to 5.8 percent, the lowest since May 2022’s 5.2 percent. This decrease was driven by deflation in vegetables and lower inflation rates in fish, meat, sugar, bread, other cereals, and fruits. Additionally, transportation experienced deflation, and inflation in restaurant and accommodation services slowed. The overall year-to-date headline inflation averaged at 6.2 percent, while core inflation was at 6.8 percent. In the National Capital Region (NCR), inflation slowed to 4.3 percent from 4.9 percent in October, and for areas outside NCR, it decelerated to 4.1 percent from 4.9 percent. Inflation for the bottom 30 percent of households also eased to 4.9 percent from 5.3 percent.
The National Economic and Development Authority (NEDA) attributed the inflation drop to effective strategies for stabilizing the food supply, anticipating domestic and external challenges. NEDA Secretary Arsenio Balisacan emphasized the importance of timely trade policy deployment and other interventions to manage inflation and protect Filipino families’ purchasing power. Balisacan highlighted the need for continued vigilance in monitoring inflation due to ongoing geopolitical tensions and potential extreme weather events. To ensure rice, corn, and swine meat supply and price stability, lower tariff rates are proposed to be maintained. Differentiated support is suggested for agricultural producers in anticipation of the projected El Niño effects, including measures to reduce transport and delivery costs.
A strong El Niño is already present in the Philippines, according to the Philippine Atmospheric, Geophysical and Astronomical Services Administration, with expectations of intensification and potential impacts on rainfall, food production, and energy generation. To mitigate energy- and fuel-related inflationary pressures, the Toll Regulatory Board, the Department of Agriculture, and other agencies are finalizing plans to exempt agricultural delivery trucks from toll increases. The Land Transportation Franchising and Regulatory Board has provided fuel subsidies to public utility vehicles, and the Department of Social Welfare and Development has launched the Walang Gutom 2027: Food Stamp Program to support low-income households. Balisacan stressed the importance of these programs’ effective implementation and the government’s strategies to enhance local food production and farmer productivity.
