Gov’t measures keep inflation to within target in November — Neda
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MANILA, Philippines – Government measures to ease inflationary measures helped keep inflation within target in November, the National Economic and Development Authority (Neda) said on Thursday.
The NEDA made the statement after the Philippine Statistics Authority (PSA) reported that headline inflation settled at 2.5 percent in November, slightly higher than the 2.3 percent seen in October.
In a briefing, PSA Undersecretary and National Statistician Dennis Mapa said inflation in November last year was higher at 4.1 percent.
READ: Inflation quickens to 2.5% in November
The latest data brought the year-to-date average inflation to 3.2 percent which is within the government’s 2 to 4 percent target range.
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“Despite the strong typhoons our country faced in recent months, consumer prices have remained relatively stable. This demonstrates the resilience of our economy and the effectiveness of our policies,” said NEDA Secretary Arsenio Balisacan.
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Balisacan, however, said the government is closely monitoring prices of commodities, especially food, following the successive typhoons in October and November.
These typhoons adversely affected food supply and logistics, resulting in a rise in food inflation to 3.5 percent from 3.0 percent, with vegetable inflation accelerating to 5.9 percent from -9.2 percent deflation in October.
A notable decline, however, was recorded in rice inflation, which dropped to 5.1 percent in November from 9.6 percent in October.
Data provided by the PSA showed that the average price of regular milled rice went down to P49.24 per kg. in November from P50.22 per kg. in October.
The average price of well-milled rice, likewise, decreased to P54.64 per kg from P55.22 per kg, while special rice also declined to P63.72 from P63.97 per kg in October.
The PSA expects rice inflation to further decline in the coming months.
“We are committed to maintaining price stability by ensuring inflation remains low and manageable. This will be supported by prudent monetary policies and strategic trade measures in the near term, as well as improved access to quality job opportunities and productivity-enhancing reforms in the medium term” said Balisacan.
To further address food prices, the Department of Agriculture will launch the Kadiwa Rice-for-All program across major public markets to offer more affordable options for consumers amid the persistently elevated rice prices.
The NEDA said the DA is also conducting an extensive review of existing livestock transport regulations to ease the transport of chickens and hogs without compromising food safety.
To address the impact of the African swine fever (ASF) and the Avian Influenza (AI), the DA issued Administrative Circular 10 authorizing the Bureau of Animal Industry to set up livestock, poultry, and meat industry inspection sites in Metro Manila and nearby regions to prevent the spread of animal diseases.
It also amended the ASF vaccine guidelines under Administrative Circular 13, s. 2024, easing participation requirements to broaden coverage and accelerate the vaccination program.
Balisacan said the government is optimistic that the December inflation figures will sustain the trend of price stability and that inflation will remain within the government’s target range.
For this year, the full-year inflation is projected to average between 3.1 and 3.3 percent, significantly lower than last year’s average inflation rate of 6.0 percent.
“Through the timely and strategic use of our various policy levers, a whole-of-government and whole-of-society approach is vital to sustain our momentum in effectively managing inflation. Achieving this objective will be key to making economic growth more inclusive and accelerating our poverty reduction efforts,” Balisacan said.
Risks to inflation
In a separate statement, the Bangko Sentral ng Pilipinas (BSP) said the latest inflation data is consistent with its assessment that inflation will continue to trend closer to the low end of the target range in the near term.
“This reflects easing supply pressures for key food items, particularly rice,” said the BSP.
The BSP said the balance of risks to the inflation outlook for 2025 and 2026 has shifted toward the upside.
It said upside risks could emanate from the potential adjustments in electricity rates and higher minimum wages in areas outside Metro Manila, while, downside factors include the impact of lower import tariffs on rice.
“The Monetary Board will consider the latest inflation outturn in its upcoming monetary policy meeting on 19 December 2024,” said the BSP.
“The BSP will continue to maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment,” it added. (PNA)