Food prices seen to ‘moderate’ in coming months

FILE: Farmers Market in Cubao, Quezon City remains crowded less than 24 hours before Christmas on Saturday (Dec. 24, 2022). Shoppers said they still have to compete their ingredients for the Noche Buena feast. (PNA photo by Robert Oswald P. Alfiler)

By Anna Leah Gonzales, Philippine News Agency

MANILA – Food prices are expected to decrease in the coming months and the overall inflation is likely to settle within the government’s 2 to 4 percent target this year, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said.

Headline inflation eased at 3.7 percent in June this year from 3.9 percent in May.

Food inflation however rose to 6.5 percent from 6.1 percent the previous month.

“The El Niño is over, hoping that the La Niña will not bring severe flooding and all that. And I think that prices will start to moderate, so I think it will enable us to achieve pa rin ‘yung (still the) target 2 to 4 percent,” Balisacan said on the sidelines of the 51st anniversary of the Development Academy of the Philippines held in Quezon City late Friday.

Balisacan said that while the worst is not yet over, the overall inflation will likely continue its downward trend in the coming months.

“Overall inflation, yes, I would expect so. ‘Yung mga non-food kasi was quite favorable, price movements in the last month. Hopefully, we can manage that, walang quite sharp, no (The non-food ones were quite favorable, [the] price movements in the last month. Hopefully, we can manage that, no quite sharp, no) unforeseen price increases coming from the utilities,” he said.

Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the June inflation data was “slightly better than expected.”

“Well, this is a cause for reassurance because it seems to be going in the direction we expected. So it’s reassuring, but we need a few more numbers.

So it’s not yet time to declare victory, as people say,” Remolona said.

The BSP earlier said the latest inflation outturn is consistent with its projections, indicating that full-year average inflation will settle within the target range for 2024 and 2025.

“Looking ahead, the BSP will continue to ensure that monetary policy settings will remain in line with its primary mandate to safeguard price stability conducive to sustainable economic growth,” it said.

Remolona earlier hinted that the BSP Monetary Board might cut policy rates as early as August this year. (PNA)

“Looking ahead, the BSP will continue to ensure that monetary policy settings will remain in line with its primary mandate to safeguard price stability conducive to sustainable economic growth,” it said.

Remolona earlier hinted that the BSP’s Monetary Board might cut policy rates as early as August this year.