Home Economy Philippines Sees Economic Improvement as Inflation Rate Drops

Philippines Sees Economic Improvement as Inflation Rate Drops

MANILA — President Ferdinand R. Marcos Jr. announced on Tuesday the government's ongoing efforts to tackle economic challenges and maintain the country's growth trajectory, highlighting the significant reduction in commodity prices as a positive development.

According to Philippines News Agency, the headline inflation rate in January 2024 fell to 2.78 percent, marking the lowest rate since the 2.3 percent recorded in October 2020.

"We are pleased to announce a significant slowdown in inflation for January 2024," President Marcos stated. He expressed the government's dedication to reducing the financial burden on citizens, pointing to recent initiatives such as electricity bill discounts for low-income households as evidence of this commitment.

The inflation rate for January 2024 represents a decrease from December 2023's 3.9 percent and a significant drop from the 8.7 percent inflation rate in January 2023. President Marcos attributed this deceleration in inflation primarily to a 3.3 percent decrease in food inflation from the previous month's 5.5 percent. He emphasized that the government's proactive measures, including the implementation of the National Adaptation Plan and the reactivation of Task Force El Niño, have been instrumental in this downward trend.

Further, President Marcos underscored the importance of strategic partnerships, such as the agreement with Vietnam for rice supplies, which enable further imports of key food commodities. These steps, he noted, are vital for ensuring the country's continued economic progress.

The President also urged the public to support the government's efforts to overcome economic challenges, envisioning a "Bagong Pilipinas" (New Philippines) with a brighter future for all. In a related development, Budget Secretary Amenah Pangandaman remarked that the latest inflation data reflect the effectiveness of the government's economic policies, despite facing global economic pressures and the impacts of climate change.