According to Philippine inflation slows as harvests boost food supply | The Star, October saw a significant slowdown in the Philippines' inflation rate as harvests increased the availability of rice and vegetables on the market and reduced the price of food.
According to the Philippine Statistics Authority, consumer prices increased 4.9% year over year last month—a significant decrease from September's 6.1% increase.
Food accounted for the largest portion of the increase, at 7.1%, but this was nearly three percentage points lower than the previous month, with rice and vegetables decreasing the fastest.
However, Balisacan issued a warning that crops may suffer from the El Nino weather phenomenon, which was predicted to deliver below-normal rainfall to the nation in the upcoming months.
At its upcoming meeting on November 16, according to Philippine inflation slows as harvests boost food supply | The Star, the central bank is projected to maintain a stable rate structure while maintaining a hawkish outlook, according to HSBC economist Aris Dacanay.
In response to projections of a higher inflation path over the policy horizon, the central bank raised rates off-cycle last month by 25 basis points to 6.5%.
Since May 2022, according to Philippine inflation slows as harvests boost food supply | The Star, rates have grown by 450 basis points.
According to Bloomberg, Finance Secretary Benjamin Diokno stated on November 6 that there was no need for interest rates to rise given the slowing pace of inflation.
President Ferdinand Marcos, whose support rating dropped by double digits in a recent poll that ranked rising costs as the top issue, will be relieved to see the inflation number.
When President Ferdinand Marcos placed a temporary price ceiling on rice in September, numerous economists expressed concern that this would cause market distortion and shortages. Marcos faced backlash.
According to Philippine inflation slows as harvests boost food supply | The Star, after serving as agriculture secretary for almost a year and failing to control commodity prices, the president appointed a fishing billionaire to the job last week.
