Philippine inflation drops to 1.9%, lowest in four years

Philippines' headline inflation dropped sharply to 1.9 percent in September 2024, marking a four-year low and falling below forecasts.

The decline was primarily driven by reduced food prices, particularly rice, with rice inflation easing significantly from 14.7% in August to 5.7%, thanks to lower tariffs on imported rice that took effect in July.

Budget Secretary Amenah Pangandaman welcomed the easing of inflation, attributing it to supply-side measures and steady vegetable crop supplies.

Labor experts noted that while slower inflation is welcome news, real wages have not increased significantly enough to keep up with living costs, particularly for the bottom 30% of the population.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said that nominal minimum wage increases are below the rate of inflation, resulting in stagnant or slightly reduced real wages.

Labor leaders like Bukluran ng Manggagawang Pilipino National President Renecio Espiritu and Federation of Free Workers President Jose Sonny Matula called for legislated wage hikes to address the high costs of essential services and ensure that minimum wage workers can meet basic needs.