Philippines food inflation eases for lower-income households in October

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Food inflation eases for lower-income

Highlights

Philippine Statistics Authority reports October food inflation for lower-income households moderated as fish and seafood inflation dropped to 6.4% from 8.4%.
Corn inflation rose to 21.5%, fruit and nuts to 10.8%, and rice inflation remained unchanged at 23.6%, while meat prices stayed deflationary at negative 3.6%.
Cereals and cereal products accounted for 78% of food inflation among the poorest households, prompting the government to expand the Benteng Bigas, Meron Na! affordable rice program.

October price trends across key food items

As reported by BusinessWorld, citing the Philippine Statistics Authority, the moderation in October food inflation for lower-income households reflects slower price growth in several categories that weigh heavily on poorer consumers' budgets.

Fish and seafood inflation eases to 6.4% from 8.4% in September. Price growth for vegetables, tubers, cooking bananas and pulses declines to 7.9% from 9%, while oils and fats slow to 6.6% from 6.8%.

At the same time, some staple and consumer categories still show faster price growth. Corn inflation rises to 21.5% from 20%, flour, bread and other bakery products, pasta products and other cereals edge up to 4.5% from 4.4%, and fruit and nut inflation accelerates to 10.8% from 8.9%. Rice inflation is unchanged month on month at 23.6%, while meat prices remain in deflation at negative 3.6%.

Impact on poorer households and government response

Among the poorest households, 78% of food inflation is attributed to cereals and cereal products, including rice, corn, bread and flour. Food overall accounts for 49.7% of inflation for the bottom-30% income segment, underlining how staple costs continue to shape overall price pressure for low-income families.

The Department of Agriculture says it is focusing on keeping food affordable for the poorest consumers. Agriculture Secretary Francisco P. Tiu Laurel, Jr. says the government is also expanding the Benteng Bigas, Meron Na! affordable rice program under President Ferdinand Marcos, Jr. to help protect vulnerable households, including senior citizens, solo parents and persons with disabilities, from external price shocks.

Our earlier coverage of the UN-backed plan to move fertilizer through the Strait of Hormuz explained that the mechanism remains stalled as the U.S. and Iran have yet to reach an agreement. We noted that prolonged disruption could tighten fertilizer supplies ahead of key planting windows, potentially lifting global agricultural commodity prices and adding to food-cost pressures in import-dependent regions.

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