MANILA, Philippines — At least for now, Filipino consumers can feel more at ease with the rising prices of basic commodities as the country’s headline inflation rate dropped to 3.3 percent in August, down from 4.4 percent in July, due to a slower increase in food and non-alcoholic beverages, the Philippine Statistics Authority (PSA) said Thursday.
The national average inflation from January to August 2024 is 3.6 percent. In August 2023, inflation was higher at 5.3 percent.
According to the statistics bureau, the main contributors to August 2024 inflation were food and non-alcoholic drinks, which made up 44.3 percent or 1.5 percentage points, followed by housing, utilities, and fuels at 24.5 percent or 0.8 percentage points, and restaurants and accommodation services at 13.3 percent or 0.4 percentage points.
During a press briefing Thursday, national statistician Claire Dennis Mapa said that the inflation in August 2024 went down mainly because the prices of food and non-alcoholic drinks increased at a slower rate, rising by only 3.9 percent compared to 6.4 percent in July.
The report showed that transport costs also contributed to the drop in inflation, with a 0.2 percent decrease in August compared to a 3.6 percent increase in July 2024.
Several commodity groups saw slower price increases during the month particularly the following:
- Alcoholic beverages and tobacco: 3.3 percent (down from 3.4 percent)
- Clothing and footwear: 3.0 percent (down from 3.1 percent)
- Furnishings and household items: 2.7 percent (down from 2.8 percent)
- Health: 2.6 percent (down from 2.8 percent)
- Recreation, sport, and culture: 3.3 percent (down from 3.4 percent)
- Education services: 5.3 percent (down from 5.8 percent)
- Restaurants and accommodation services: 4.6 percent (down from 4.9 percent)
- Personal care and miscellaneous goods: 3.0 percent (down from 3.2 percent)
However, housing, water, electricity, gas, and other fuels saw a larger increase, rising by 3.8 percent compared to 2.3 percent in July, Mapa said.
Plummeting food inflation
The PSA also noted that food inflation across the country slowed to 4.2 percent in August 2024, this rate is down from 6.7 percent in July although in August 2023, it was higher at 8.2 percent. This drop was mainly due to a slower rise in rice prices, which increased by 14.7 percent compared to 20.9 percent in July.
Prices for vegetables, bananas, and similar items also fell by 4.3 percent, reversing the 6.1 percent rise from the previous month. Additionally, fish and seafood prices dropped by 3.1 percent, and sweets like sugar fell by 3.8 percent, showing bigger declines than in July.
It likewise said that inflation rates dropped for several food groups including flour, bread, pasta, and cereals fell to 2.4 percent from 2.6 percent, meat prices decreased to 4.0 percent from 4.8 percent and ready-made food and other miscellaneous food items went down to 5.5 percent from 6.0 percent.
