MANILA – October’s inflation in the Philippines is expected to slow down according to predictions by the Philippine Amalgamated Supermarkets Association (PAGASA).
According to Philippines News Agency, President of PAGASA, in a recent discussion, the price of goods typically found in supermarkets displayed notable stability in the past month, with certain items even experiencing price reductions. This trend aligns with the Bangko Sentral ng Pilipinas’ (BSP) forecast, which anticipated that headline inflation for October might settle within the 5.1 to 5.9 percent bracket. This rate would represent a decrease from September’s 6.1 percent inflation level, and a significant drop from the 7.7 percent inflation rate recorded in October of the previous year.
“Consumers are maxed out with recent price increases… you can’t raise prices anymore without losing market share. From our end, we can really feel inflation getting slower,” Cua articulated during his interview with the Philippine News Agency. He also highlighted the impact of President Ferdinand R. Marcos, Jr.’s Executive Order No. 39, which set price limits on regular- and well-milled rice, as a contributing factor to the tempering of price hikes.
The official inflation data for October is scheduled to be published by the Philippine Statistics Authority next week.
Cua also pointed out the change in consumer behavior and government policies that led to missed sales opportunities for retailers during the consecutive periods of the Barangay and Sangguniang Kabataan Elections (BSKE) and All Saint’s Day. Historically, these events would boost sales for items like beverages and snacks. However, due to the Commission on Elections’ (Comelec) ban on candidates offering refreshments to voters and the shift towards ordering food from delivery services or food trucks during cemetery visits, these anticipated surges in supermarket sales did not materialize.
“We really missed out on two good reasons for money to move around,” Cua lamented, referring to the affected sales of bottled water, soft drinks, biscuits, and other snack items.