Philippines' Aug inflation rate falls to 3.3%, seven-month low

In August 2024, the Philippines' inflation rate fell to 3.3%, a seven-month low, due mainly to reduced food and transportation costs, easing pressure on the central bank to cut interest rates further.

Food prices notably slowed to 3.9% from July's 6.4%, with rice prices decreasing significantly to 14.7%. The government’s Kadiwa program and tariff cuts on imported rice contributed to this decline.

Despite these positive trends, potential risks such as higher electricity costs and weather disruptions remain. The government has measures in place for early warning systems and allocated P15 billion for national risk reduction.

House of Representatives Speaker Ferdinand Martin Romualdez emphasized the importance of coordination between the executive and legislative branches to further decrease inflation rates.

Albay 2nd District Rep. Joey Salceda believes that these numbers will boost consumer confidence, which would eventually help industries earn more, though he advised continued monitoring of rice and corn prices.