MANILA, Philippines — The Philippines' inflation rate plummeted to 1.9% in September 2024, its lowest level since May 2020, according to data released Friday by the Philippine Statistics Authority.
This marks a sharp decline from August's 3.3% and September 2023's 6.1% rates, falling below the central bank's projected range of 2% to 2.8%.
The most significant factor in the inflation slowdown was the food and non-alcoholic beverages sector, where inflation plunged to 1.4% from 3.9% in August.
Rice prices, a staple in Filipino diets, saw a dramatic deceleration, with inflation dropping to 5.7% from 14.7% in just one month.
Also contributing to the decline was the transport sector, , recording a 2.4% year-on-year decrease in September, compared to a 0.2% drop in August.
Domestic expenses, such as housing and utilities, also saw inflation slow to 3.2% from 3.8%
Food inflation. The food inflation rate nosedived to 1.4% in September 2024 from 4.2% in August, a stark contrast to the 10% recorded in September 2023.
This decline was widespread across various food categories:
- Corn dropped to 6.9% from 18.4%
- Flour, bread, pasta, and cereals slowed to 2.3% from 2.4%
- Meat and other animal products decreased to 3.6% from 4.0%
- Ready-made food products declined to 5.1% from 5.5%.
However, some food items bucked the trend:
- Milk, dairy products, and eggs: Inflation rose to 4.0% from 3.2%
- Fruits and nuts: Increased to 11.9% from 9.4%
Despite the overall rate decline, the index for fish and other seafood noted a slower annual decrease of 1.2%, while oils and fats saw a slower drop at 1.4%, both coming down from their respective decreases of 3.1% and 2.0% in August.
The index for sugar, confectionery, and desserts retained its previous month’s annual decrease of 3.8%.
Core inflation, which excludes volatile food and energy prices, also eased to 2.4% in September from 2.6% in August. This broad-based decline in inflation rates suggests a potential shift in the country's economic landscape, possibly influencing future monetary policy decisions.