Inflation Likely to Drop to 2.5% in September — Recto

Finance Secretary Ralph Recto announced on Tuesday that inflation in the Philippines is expected to decline to 2.5% in September, down from 3.3% in August. Recto shared this projection during a Palace briefing, noting that the anticipated inflation rate falls within a range of 2.1% to 2.9%, with the midpoint at 2.5%.

Recto expressed optimism that the inflation target for September would be met, adding that recent trends indicate a steady easing of inflation. In August, inflation slowed to 3.3%, a significant improvement from July’s 4.4%, according to data from the Philippine Statistics Authority (PSA). The PSA attributed this decrease to slower price increases in food and transportation.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan noted that the continued decline in inflation supports household consumption, particularly benefiting low-income families as food prices stabilize. However, Balisacan cautioned that potential pressures, such as rising electricity rates and weather disturbances, could affect future inflation.

Despite these concerns, Recto indicated that inflation in the fourth quarter may increase but will likely remain within the 3.1% to 3.9% range.