Philippine headline inflation fell further to 0.9% year-on-year (yoy) in September, the lowest since June 2016. The decline in food prices, specifically rice prices, largely brought down inflation. Rice tariffication liberalized rice importation which brought down rice prices, from over PHP 48 to PHP 40 and below.
Rice prices are projected to go down further as we encourage major food retailers to import rice directly and cut down traders.
NFA is also bringing out their rice inventory and the Philippine International Trading Corporation (PITC) will also be asked to consolidate importation for smaller rice retailers and food outlets.
The drop in transport costs has also contributed to the inflation deceleration. Global oil prices stabilized as concerns over potential oil supply disruption from attack on Saudi Aramco oil facilities simmered down.
Average inflation over January to September period now stands at 2.8%, already below the midpoint of the government’s inflation target range.
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