INFLATION returned to the 2.0- to 4.0-percent target in August, settling at 3.3 percent after spiking to 4.4 percent a month earlier. The result was within the Bangko Sentral ng Pilipinas' (BSP) 3.2- to 4.0-percent estimate but was lower than the 3.7-percent median in a Manila Times poll of economists. Consumer price growth a year earlier was an above-target 5.3 percent. Core inflation, which excludes volatile food and energy items, declined to 2.6 percent from 2.9 percent in the previous month and 6.1 percent in the same month last year. Year to date, headline inflation and core inflation hit 3.6 percent and 3.2 percent, respectively. "The downtrend in the overall inflation in August 2024 was primarily brought about by the slower annual increment of food and nonalcoholic beverages at 3.9 percent in August 2024 from 6.4 percent in the previous month," the Philippine Statistics Authority (PSA) said. "Also contributing to the downtrend was transport with an annual drop of 0.2 percent during the month from a 3.6 percent annual increase in July 2024," it added. Food price growth slows Food inflation, in particular, slowed to 4.2 percent from the previous month's 6.7 percent. "The deceleration of food inflation in August 2024 was primarily brought about by the slower inflation rate of rice with 14.7 percent in August 2024 from 20.9 percent in the previous month," the PSA said. "This was followed by vegetables, tubers, plantains, cooking bananas and pulses with a year-on-year decline of 4.3 percent during the month from 6.1 percent annual increase in July 2024," it added. National Statistician Claire Dennis Mapa said the slowdown in rice price growth was aligned with the PSA's expectation of a second-half drop due to base effects and lower rice tariffs implemented in July. Executive Order 62, which slashed the duty on rice imports to 15 percent from 35 percent, took effect last month. "We hope to see bigger drops in the coming months," Mapa said. "This month of September, it will further go down to single-digit." Tariff cut to help The BSP said that implementation of lower rice tariffs would ease inflation further. "The balance of risks to the inflation outlook continues to lean toward the downside for 2024 and 2025 with a slight tilt to the upside for 2026," it noted. "The downside risks are linked mainly to lower import tariffs on rice, while upside risks could come from higher electricity rates and external factors." The central bank said that monetary officials would "continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment." Firms, households to benefit Easing inflation could encourage more investments and support growth in household consumption, Socioeconomic Planning Secretary Arsenio Balisacan said in a separate statement. Balisacan noted that low-income households, where 51.4 percent of spending is on food, would particularly benefit. Businesses, concerned about persistent inflation, could, meanwhile, be encouraged to boost investments and expand, especially with declining borrowing costs. Balisacan, however, warned that potential risks remained from rising electricity rates and unusual weather disturbances. "The government is prepared to address these pressures to ensure stable inflation," he said. "Notably, the government has allocated P15 billion for national risk reduction in 2024," Balisacan continued. "The government will continue to implement measures to reduce further inflationary pressures, including enhancing agricultural productivity, expanding logistics infrastructure and ensuring the efficient delivery of social services." 'Our work will not stop' In Malacañang, President Ferdinand Marcos Jr. said the government was putting in place steps to ensure that every Filipino feels the benefits of lower inflation. "Our work will not stop. We will continue to make progress to ensure that every Filipino will have a more comfortable life by having quality jobs and cheap commodities," he said in statements posted on official social media accounts. One measure is the establishment of more Kadiwa centers, where affordable goods are offered to the public, across the country. The government is also taking steps to stabilize the prices of fuel and has also begun the controlled roll-out of a vaccine against African swine fever vaccine to prevent pork prices from spiking. "These are concrete steps we're taking to make sure that the Bagong Pilipinas we promised is felt where it matters most, here at home," Marcos said. WITH A REPORT FROM KRISTINA MARALIT