Headline inflation eased to 4.9 percent in October this year from 6.1 percent in September, the Philippine Statistics Authority (PSA) reported on Tuesday, Nov. 7.

Last month’s headline inflation rate was also lower than the 7.7 percent recorded in October last year.

Core inflation, which excludes volatile oil and food items, was also down to 5.3 percent from 5.9 percent in September.

In a briefing, National Statistician Dennis Mapa said the downtrend was due to the slower year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 7.0 percent in October from 9.7 percent in September.

Mapa said the deceleration of inflation was primarily brought about by the lower annual growth of vegetables, tubers, plantains, cooking bananas and pulses at 11.9 percent from 29.6 percent in September.

Lower year-on-year growth rates were also seen in other food groups such as flour, bread, and other bakery products; meat and other parts of slaughtered land animals; fish and other seafood; sugar, confectionery and desserts; and ready-made food and other food products.

Rice inflation also slowed to 13.2 percent from 17.9 percent the previous month.

“Price of rice decreased month-on-month,” Mapa said.

He said the average price of regular-milled rice went down to PHP45.40 per kilogram (kg) from PHP47.50 per kg in September.

For well-milled rice, the average price also declined to PHP51 per kg from PHP52.70 per kg the previous month.

“If we don’t see any supply shocks, our outlook is inflation will go down [for the remaining months of 2023],” Mapa said.

The restaurants and accommodation services, with an inflation rate of 6.3 percent in October from 7.1 percent in September 2023, also contributed to the downtrend of the headline inflation.

Year-to-date, headline inflation settled at 6.4 percent while core inflation was at 7.0 percent.

Inflation in the National Capital Region (NCR) also decelerated to 4.9 percent from 6.1 percent in September.

For areas outside NCR, headline inflation also slowed down to 4.9 percent in October from 6.0 percent the previous month.

Inflation for the bottom 30 percent households meanwhile also eased to 5.3 percent from 6.9 percent in September this year.PNA