BSP: Inflation Rate Down In September

Year-on-year headline inflation dropped to 1.9 percent in September, down from 3.3 percent in August.

Inflation for other key food items such as corn and vegetables also fell.

This is below the BSP’s forecast range of 2.0 to 2.8 percent for the month. The resulting year-to-date average of 3.4 percent is within the government’s inflation target range of 2.0 percent to 4.0 percent for the year.

On a month-on-month seasonally adjusted basis, headline inflation in September remained unchanged at -0.1 percent from the previous month’s rate.

Meanwhile, core inflation eased further to 2.4 percent in September, down from 2.6 percent in August.

Headline inflation moderated during the month due to slower food and non-food inflation, along with base effects. Rice inflation decelerated as the domestic supply stabilized with rice import arrivals.

Inflation for other key food items such as corn and vegetables also fell. Meanwhile, the rollback in domestic petroleum prices during the month drove the decline in transport inflation.

The latest data affirm the BSP’s outlook that headline inflation will continue to trend downward over the coming quarters. Looking ahead, the BSP will consider the latest inflation outturn at the upcoming monetary policy meeting on October 16, 2024.