By Anna Leah Gonzales | Philippine News Agency
Headline inflation settled at 3.8% in April this year, significantly lower than the 6.6% recorded in the same month last year, the Philippine Statistics Authority (PSA) said on Tuesday.
The headline inflation last month was within the government’s 2% to 4% target but was slightly higher than the 3.7% in March this year.
In a briefing, PSA Undersecretary and National Statistician Dennis Mapa said the uptrend in overall inflation in April was primarily influenced by the higher year-on-year increase in food and non-alcoholic beverages at 6% from 5.6% in March 2024.
Food inflation in particular rose to 6.3% from March’s 5.7%.
Rice, however, recorded a lower inflation rate of 23.9% in April, down from 24.4% in March.
“Ang nakita namin bumababa ng kunti ang world price ng rice. Nag peak siya January 2024 and then may pagbaba nung Feb(ruary) and March. Konti lang,” Mapa said.
“But the trajectory is that two months na siya dun sa world prices na bumaba, so this might have impact dun sa pag-decline ng presyo ng bigas ng konti,” he added.
Mapa said the faster annual growth rate of the transport index, at 2.6% in April from 2.1% the previous month, also contributed to the uptrend of overall inflation.
In a statement, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said that while inflation remains within target, the increase underscores the need for vigilance.
“We are taking comprehensive measures to ensure food security amid geopolitical concerns and weather patterns worsened by climate change,” Balisacan said.
“The government’s major strategies aim to increase productivity, build the resilience of the agriculture sector, and improve the efficiency of food systems,” he added.
Last April 30, President Ferdinand R. Marcos Jr. signed Executive Order (EO) No. 59 to expedite the implementation of the country’s infrastructure flagship projects (IFPs).
Several IFPs are intended to improve the connectivity of the country’s agriculture sector to the market, thus reducing transport costs.
“Meanwhile, we must augment local production during shortages to ensure an adequate food supply at affordable prices for all Filipinos. Food insecurity extends beyond economic strain — it directly impacts the well-being of all Filipinos,“ Balisacan said.
Failure to augment local production during shortages perpetuates poverty and exacerbates vulnerability, he added.
EO No. 59 complements the directives under Administrative Order No. 20, which reconstituted a surveillance team consisting of the Agriculture, Trade and Industry, Interior and Local Government and Justice departments, Bureau of Customs, Philippine Competition Commission, National Bureau of Investigation, and Philippine National Police.
The team oversees the importation and distribution of agricultural products, prevents price manipulation, and addresses other forms of unfair or anti-competitive commercial practices.
“We prioritize food security, economic growth, and the welfare of our producers and consumers,” Balisacan said. “Our actions aim to boost local production and prepare for any challenges in food supply and price upticks.”
Medium-term inflation path
In a separate statement, the Bangko Sentral ng Pilipinas (BSP) said the latest inflation outturn is consistent with its expectations that inflation could accelerate temporarily above the target range in the next two quarters of the year due to the possible negative impact of adverse weather conditions on domestic agricultural output and positive base effects.
The BSP, however, expects average inflation to return to the target range for full year 2024 and 2025.
“The risks to the inflation outlook continue to lean toward the upside. Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and global oil prices,” it said.
The BSP said the potential minimum wage adjustments could also give rise to second-round effects.
“Looking ahead, the Monetary Board will consider the latest inflation and Q1 (first quarter) 2024 GDP (gross domestic product) outturns, among other information, in its upcoming monetary policy meeting on 16 May 2024,” it added.
The BSP assured it will continue to support the national government’s non-monetary measures to address supply-side pressures on prices and sustain the disinflation process.
