October inflation accelerates to 2.3%

MANILA, Philippines — October 2024’s inflation rate quickened to 2.3% following a record low of 1.9% in September 2024, the Philippine Statistics Authority (PSA) reported on Tuesday, November 5.

The newest round of inflation brings the national average from January to October 2024 to 3.3%. 

“The uptrend in the overall inflation in October 2024 was primarily influenced by the faster annual increment in the heavily-weighted food and non-alcoholic beverages at 2.9 percent during the month from 1.4 percent in September 2024,” the PSA said in its report. 

Transport’s yeat-on-year decrease also slowed, which also contributed to the uptrend. 

The PSA said that the following commodities were the top contributors to inflation: 

1. Food and non-alcoholic beverages: 46.9% of inflation 
2. Housing, water, electricity, gas and other fuels: 22.0% of inflation 
3. Restaurants and accommodation services: 16.1% of inflation

Food inflation also rose from 1.4% in September 2024 to 3.0%  in October 2024. Rice remains to be the main driver of food inflation. The staple’s inflation rate surged 9.6% in October 2024 from 5.7% in September 2024. 

The following food items remain to be the main drivers of food inflation: 

1. Cereals and cereal products, which include rice, corn, flour, bread and other bakery products, pasta products, and other cereals: 78.2% of inflation 
2.  Meat and other parts of slaughtered land animals: 19.6 % of inflation 
3. . Fruits and nuts: 14.2% of inflation 

Meanwhile, core inflation, which excludes volatile food and energy items, is at 2.4% as of October 2024. 

The Bangko Sentral ng Pilipinas (BSP) said October 2024’s inflation remains within their forecast of 2.0% to 2.8%. The BSP said they see a trend where inflation would typically fall on the lower end of their forecast. 

There will also be upside risks to the inflation outlook which could come from adjusted electricity rates and higher minimum wages outside of Metro Manila, said the BSP. Downside factors may be linked to lower rice tariffs. 

Meanwhile, the National Economic and Development Authority (NEDA) said that October 2024’s inflation remains within the government’s target range of 2.0% to 4.4%. 

"The latest inflation figures confirm that we are on track to keep inflation within target. The government is fully committed to ensuring price stability and protecting Filipino households from undue shocks," NEDA Secretary Arsenio Balisacan said in a statement. 

However, NEDA admitted that there were challenges in October that may have affected the inflation rate. 

“Recent weather disturbances, including Typhoon Kristine, have posed significant challenges to our food supply and logistics. The government is working relentlessly to keep food available and prices steady, particularly for essential commodities,” Balisacan said. 

Similarly, the Department of Finance also said that the uptick in inflation was due to weather disturbances.

"The slight uptick in our October inflation rate was mainly caused by temporary factors, such as weather disturbances like Severe Tropical Storm Kristine and Super Typhoon Leon. We are on top of ensuring that the affected communities get the help that they need to recover faster from the recent disasters," Finance Secretary Ralph Recto said.