PH Inflation Expected to Drop Further in September

Inflation in the country is expected to continue its downward trend, according to Finance Secretary Ralph G. Recto. In a press briefing at Malacañan Palace on September 24, 2024, he stated that inflation could drop to 2.5% in September, down from 3.3% in August, based on projections.

The Department of Finance shared this update on its official Facebook page, with Recto expressing confidence that the government’s interventions are helping keep inflation manageable.

He assured the public that the year-end inflation rate is likely to settle at around 3.4%, well within the government’s target range.

Recto emphasized the government’s efforts, such as reducing tariffs on rice, boosting agricultural productivity, and implementing social protection programs to ease inflation’s impact.

He mentioned that these measures aim to cushion citizens from rising prices, especially for essential goods.

Efforts to manage non-food inflation are also ongoing, with plans to stagger electricity rate hikes to lessen the burden on consumers. Recto highlighted the need to remain vigilant regarding external factors, including geopolitical tensions.

The Finance Secretary believes that the lower inflation rate could boost the country’s GDP growth and create more job opportunities. This positive outlook may lead to a reduction in policy rates by the Bangko Sentral ng Pilipinas (BSP), which would benefit businesses and ordinary citizens through lower borrowing costs.

Agriculture Secretary Francisco Tiu Laurel Jr. also attended the briefing to discuss measures to manage food and non-food inflation.

The briefing was organized by the Presidential Communications Office following a Cabinet sectoral meeting on inflation management. (ASC)