towards Katherine K. Chan
Philippine headline inflation it strengthened in October as a slow price it increases vegetables and meat The highest usage costs at the time per month, Philippine statistics Kind ofsaid Prity (PSA) on Wednesday.
PSA data showed that the consumer price index (CPI) stood at 1.7% on 1 October, unchanged from September’s reading but up from 2.3% a year earlier.
This was slower than the 1.8% forecast in the middle of a Businessworld A poll of 17 analysts was conducted last week, but within the bangko sentral ng Pilipinas ‘(BSP) 1.4-2.2% Weather.
October also marked the eighth straight month that inflation fell below the central bank’s belt.
In the 10 months to October, inflation is in line with the BSP’s full target of 1.7%.
Meanwhile, core inflation, which discounts exchange rates for food and fuel, eased to 2.5% from 2.6% in September. However, it was slightly faster than the 2.4% Print in October 2024.
This brought annual core inflation to 2.4%, reducing from the 3.1% clip seen in the Unit Pakable Narya year – last year.
Housing, Water, electricity, gas and other fuels contributed the most to the CPI during the month and posted an average price increase of 2.7%
Electricity alone posted inflation of 4.1% in October, accelerating from A 1.2% clip is seen in September.
In October, Manila Electric CO moved the general electricity rate by P0.2331 per kilowatt hour (kWh) at P13.3182 per kWh. This one said residential customers consuming 200 kWh had to pay an additional P47 on their bill last month.
Meanwhile, water supply inflation was revised up to 5.7% in October from 5.3% last month.
In September, the Metropolitan Waterworks and Sewerage System is ready for the proposed P0.14 per cubic meter (Cu.m.) Hike for Maynilad and P0.15 per CU.M per CU.M. water recovery in Manila during the period of October-December.
The Ministry of Economy, Planning, and Development Secretary Arisacan said that the government’s efforts to manage supply conditions and ensure that price stability helped the intensity of the strong hold in October.
“The strong demand rate of the heads shows that our systematic intervention is helping to maintain sufficient supplies and keep essential goods affordable,” the statement said. “We remain vigilant in managing risks from weather disruptions, global market volatility, and other domestic factors that could affect prices in the coming months.”
At that time, the gradual reduction of food and not doing harmful things with alcohol raised a little stress in October.
Food with strong weight and nonalcoholic Beverage Indicators exposed to 0.5% in October from 1% Clip in last month.
“Our food basket, food and alcohol, has a heavy weight in the inflation basket at 37.75% more or less,” said Mr. Maps.
Food inflation decreased year-on-year to 0.3% from 0.8% last month and 3% in October 2024.
This came as vegetables rose, with tubers, spinach, cooking bananas and pulses cutting to 16.6% from 19.4% in September.
Similarly, the PSA recorded the inflation of meat and other parts of the world’s animals slaughtered in October At 5.2% from 6% last month.
However, Mr. Mapta noted that food pressures remain as fish prices and other seafood prices took 8.2% from 7.2% from 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% by 7.9% in September.
Rice prices
The decline of traditional power continued to Negative for the tenth consecutive month at -17% in October from -16.9% in September.
Mr. Mapa said rice prices continued to decrease amid increasing paddy rice production in the quarter.
“Our production is high, but of course, world market prices are also starting to fall.
PSA data, Mr. Mapata said a kilo of regular pounded rice was sold at an average price of P40.09 in October, down 20.2% from P50.22 a year ago. Milled rice is also cheaper at an average of P46.49 per kilo, down 15.9% from P55.28 last year. Meanwhile, special rice was sold at P56.39 per kilo last month, down 11.8% from P63.97 in October 2024.
“Without the ban on the import of rice, the price of cereals was mainly stable while meat and milk prices decreased, Aris D. DACANAY, Economist of the country in research with HSBC Investment Research, said in an email note.
Earlier, President Ferdinand R. Marcos, Jr. recorded 60 rice imports by importing rice from September 1 to November 2 to support local farmers and stabilize prices.
The moratorium has been extended to Ornend, with the government looking to open an import window in January before getting a ban from February to April.
At the same time, the PSA data also shows that the decline in prices in the National Capital Region (NCR) was taken to 2.9% in October from 2.7% in the previous month and 202% in the same month in 2024.
Excluding the NCR, inflation stood at 1.3% from 1.5% in September and a clip of 2.6% a year ago.
The Central Visayas still saw the highest print of other regions at 2.6%, while the rates of the Bangsamoro Autonoom Region in Muslim Mindanao declined the fastest at -1.3%.
Inflation for less than 30% of income households decreased at a faster pace of -0.4% in October from -0.2% in September. During the 10 months, it was revealed by 0.3%, less than 4.5% last year.
Inflation ahead
The BSP still sees a set of inflationComing in below its target of 2-4% nominally, reflecting the recent reduction in rice prices in the country.
“Inflation is considered to be on average below the lower end of the target range for the year 2025, mainly due to the reduction in rice prices in recent months,” the statement said. “Inflationary downside risks are limited as price pressures are expected to affect global prices.”
However, the Central Bank said the outlook for domestic economic growth has weakened.
“This view partially reflects the impact on business certainty of justified concerns about spending on public infrastructure. Smoreing Funch points out.” BSP said.
In November, Mr. Mapata said fuel prices are likely to drive fuel pressures following the recent pump price adjustment.
Oil firms in the country introduced fuel price hikes on Tuesday, up to P1.70 per liter of gasoline, P2.70 per liter of diesel and P2.10 per liter of gasoline.
Mr. Mapata said they will continue to monitor the impact of recent storms on consumer prices, as well as Mr Marcos’ previous directive to keep prices stable.
“There are threats in the food price war. Some things are increasing, (such as) the price of Fish (and) vegetables, “Mr. Mapa He said, Marking the prices of vegetables is sensitive to weather conditions.
In a note on Wednesday, Chinabank research said inflation is likely to remain low in the coming months, but noted that pump prices and the impact of weather on food prices remain risks.
“We expect inflation to remain low for the rest of the year, despite the exposure of higher prices from energy – the increase in prices at the edge of the local area this week – and from the sensitive elements of the weather,” it said.
Meanwhile, HSBC’s Mr Dacanay said benign inflation and clear rice policies could push the BSP to cut rates by 25 basis points (BPs) in December.
“For all, we think that October’s inflation and the clarification of rice policies strengthen the case in December to be decided by the BSP,” he said. “Without the constraints on deflation, fiscal policy has a road to pump to pump up the economy to, hopefully, offset the financial fallout brought about by the hop arp on public infrastructure spending.”
Starting its cycle in August 2024, the monetary board cut its key policy rate by 175 bps to an annual rate of 4.75%.
BSP Governor Eli M. Remolona, Jr. he has signed to reduce the reduction until the next year to support the economy as the flood control flood has hit the business vision, getting their vision of growth.
The currency board will hold its final meeting this year on December 11.
