Statement on the September 2024 inflation report

October 4th, 2024

Rep. Joey Sarte Salceda

The surprisingly low September inflation figures gives the Marcos administration plenty of room to pursue more ambitious spending programs in economic and social services. It also gives the Bangko Sentral ng Pilipinas much room for maneuver when the US Fed and other central banks inevitably adjust their interest rate levels.

Low food inflation was due to massive disinflation in fruits and vegetables and slight reduction in prices for fish. Sugar inflation, which usually was in the mid-20s over the past months, was also negative, indicating that prices may be normalizing.

We must remain vigilant about rice inflation, which the poor tend to be most sensitive to. Rice is still at 5.7 percent—we could still improve this figure. The October harvest season should further lower these levels. We should also watch out for corn prices, at 6.9 percent inflation, given its key importance as an input to meat, poultry, and fish prices.

Moving forward, the House of Representatives has already established a five-committee panel on food security and food prices. My Committee, the Committee on Ways and Means, will be the principal Committee for this effort. Other constituent committees are Trade and Industry, Food and Agriculture, Social Services, and Special Committee on Food Security.

The Quint-Comm will have at least four tangible goals:

1. Chart a path to P20/kg rice;
2. Increase the annual GVA growth in agriculture to at least 2 percent, so that it catches up with our population growth;
3. Reduce agricultural production losses from as much as 30 percent to 15 percent (and halve the post-harvest losses in vegetables and fruits from 42% and 28% respectively, to about half of each number);
4. Bring livestock and poultry prices in Philippines to regionally competitive levels

We hope to make real and structural improvements to our food systems, similar to the numerous accomplishments of the House Joint Hearings on Senior Citizens and PWD benefits earlier this year.