Philippine headline inflation settled at 3.8% n April this year, or within the government’s target of 2% to 4% and significantly lower than the 6.6% recorded in the same month last year, the Philippine Statistics Authority (PSA) said on Tuesday.

Food inflation was primarily blamed for the slightly higher inflation rate in April.

April’s inflation figure, however, was slight higher than the 3.7% in March this year, and marking the third straight month of inflation creeping higher. Nonetheless, the latest inflation figures was below the 4% expectation of some analysts.

The stock market reacted positively to the slightly higher rate for April as the Philippine Stock Exchange index (PSEi) gained 0.51% to 6,618.58 points on May 7, marking the third straight day the stock index went up.

In a briefing, PSA Undersecretary and National Statistician Dennis Mapa said the uptrend in the overall inflation in April was primarily influenced by the higher year-on-year increase in food and non-alcoholic beverages at 6% from 5.6% in March 2024.

Food inflation in particular rose to 6.3% from March’s 5.7%. Rice, however, recorded a lower inflation rate of 23.9% in April, down from 24.4% in March, showing that local production of the staple is still reeling from the effects of the El Nino weather disturbance.

” What we saw was world prices of rice slightly declined. It peaked last January 2024 and then there’s a slight decline last February and March. Just a bit,” Mapa added.

 “But the trajectory is that world prices are declining for the past two months so this might have impact in the decline of rice prices just a bit),” he said.

Mapa said the faster annual growth rate of the transport index at 2.6% in April from 2.1% the previous month also contributed to the uptrend of the overall inflation.

NEDA TO REMAIN VIGILANT

In a statement, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said that while inflation remains within target, the increase underscores the need for vigilance.

“We are taking comprehensive measures to ensure food security amid geopolitical concerns and weather patterns worsened by climate change,” Balisacan said.

“The government’s major strategies aim to increase productivity, build the resilience of the agriculture sector, and improve the efficiency of food systems,” he added.

Last April 30, President Ferdinand R. Marcos Jr. signed Executive Order (EO) No. 59 to expedite the implementation of the country’s infrastructure flagship projects (IFPs).

Several IFPs are intended to improve the connectivity of the country’s agriculture sector to the market, thus reducing transport costs.

“Meanwhile, we must augment local production during shortages to ensure an adequate food supply at affordable prices for all Filipinos. Food insecurity extends beyond economic strain — it directly impacts the well-being of all Filipinos,“ Balisacan said. 

Failure to augment local production during shortages perpetuates poverty and exacerbates vulnerability, he added. 

EO 59 complements the directives under Administrative Order No. 20, which reconstituted a surveillance team consisting of the Agriculture, Trade and Industry, Interior and Local Government and Justice departments, Bureau of Customs, Philippine Competition Commission, National Bureau of Investigation, and Philippine National Police.

The team oversees the importation and distribution of agricultural products, prevents price manipulation, and addresses other forms of unfair or anti-competitive commercial practices. 

“We prioritize food security, economic growth, and the welfare of our producers and consumers,” Balisacan said. “Our actions aim to boost local production and prepare for any challenges in food supply and price upticks.”