Inflation declines amid lower prices for food and non-alcoholic beverages

The rate of increase in consumer prices slowed last month due to lower food costs, data from the Philippine Statistics Authority (PSA) showed yesterday.

The country’s headline inflation fell to 2.4 percent in August from 2.7 percent in the previous month, but higher compared to 1.7 percent in the same period last year.

Heavily weighted food and non-alcoholic beverages slowed to 1.8 percent for the month from 2.4 percent in July.

In particular, food inflation fell further to 1.7 percent last month from 2.5 percent in July, but higher than 0.3 percent a year ago, while food prices rice maintained its downward trajectory at -1.1 percent.

Similarly, other groups of basic products registered lower inflation with alcoholic beverages and tobacco, 17.7 percent; clothing and footwear, 1.9 percent; furniture, household goods and routine house maintenance, 3.9 percent.

Likewise, education stood at 0.1 percent, while catering and miscellaneous goods and services at 2.3 percent.

Recreation and culture, which declined -0.1 percent from 1.1 percent in July, also helped reduce inflation.

On the other hand, inflation for housing, water, electricity, gas and other fuels increased slightly by 0.9 percent from 0.8 percent the previous month. The inflation rates of the previous month were maintained in health (2.8 percent), transportation (6.3 percent) and communications (0.3 percent). Core inflation, which excludes certain food and energy, also slowed to 3.1 percent in August from 3.3 percent the previous month.

Acting Secretary for Socio-Economic Planning Karl Kendrick Chua said that improved supply chain efficiency in agriculture is needed to keep inflation low and stable in the country amid the ongoing COVID-19 pandemic and typhoons. imminent.

“As we continuously implement various levels of community quarantines and localized closures across the country, we need the government and the private sector to take advantage of local agricultural products and maximize the use of digital technologies to ensure stability in the supply chain,” he said Chua.

He also underlined the need to effectively manage the supply and allocation of agricultural products to ensure sufficient reserve stocks, avoid waste and spoilage, and minimize losses to farmers.

This includes facilitating the delivery of vegetables and other agricultural products to Metro Manila and other regions, he said.

“Investments in cold storage facilities and innovations in food packaging and processing must also be increased, along with the boost of agricultural production, both in rural and urban areas, through the ‘Plant, Plant, Plant’ program. of the government, ”Chua said.

To mitigate potential losses and ensure a rapid response to potential disaster-prone areas, he also highlighted the need for preventative preparations on production support, crop insurance and other recovery programs, as La Niña is anticipated to hit the end of September or October.