HIGHER prices of key food items, particularly rice and transport costs, pushed inflation up in October, the Philippine Statistics Authority (PSA) reported on Tuesday.

Consumer price growth accelerated to 2.3 percent last month from 1.9 percent in September, hitting the median estimate in a Manila Times poll of economists and also falling within the Bangko Sentral ng Pilipinas' (BSP) 2.0- to 2.8-percent forecast.

It was markedly lower than the year-earlier 4.9 percent and remained within the BSP's 2.0- to 4.0-percent target.

"The uptrend in the overall inflation in October 2024 was primarily influenced by the faster annual increment in the heavily-weighted food and non-alcoholic beverages at 2.9 percent during the month from 1.4 percent in September," the PSA said in a statement.

"Also contributing to the uptrend was transport with a slower year-on-year decrease of 2.1 percent during the month from a 2.4 percent annual drop in September 2024," it added.

Core inflation, which excludes volatile food and energy items, remained at 2.4 percent, but was lower than the 5.3 percent a year ago.

Year to date, headline inflation and core inflation averaged 3.3 percent and 3.1 percent, respectively.

Food inflation more than doubled to 3.0 percent last month from September's 1.4 percent and was attributed to rice inflation surging to 9.6 percent from 5.7 percent.

Food and non-alcoholic beverages accounted for the biggest share of overall inflation at 44.3 percent, or 1.5 percentage points, the PSA said.

"In addition, the index of corn also contributed to the uptrend as it recorded a faster annual increase of 9.7 percent during the month from 6.9 percent in September 2024," it noted.

The BSP, meanwhile, said that the latest inflation data was consistent with its assessment that consumer price growth would "continue to trend closer to the low end of the target range over the succeeding quarters."

"This reflects easing supply pressures for key food items, particularly rice," it added.

"Nonetheless, the balance of risks to the outlook for 2025 and 2026 has shifted toward the upside. Upside risks to the inflation outlook could emanate from the potential adjustments in electricity rates and higher minimum wages in areas outside Metro Manila, while downside factors continue to be linked to the impact of lower import tariffs on rice."

The policymaking Monetary Board, it continued, will "maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment."

Socioeconomic Planning Secretary Arsenio Balisacan said the latest inflation figures were a confirmation that government efforts to keep a lid on price growth were working.

While recent weather disturbances, including Severe Tropical Storm Kristine, have posed significant challenges to food supply and logistics, "the government is working relentlessly to keep food available and prices steady, particularly for essential commodities," he added.

"With targeted support and streamlined food supply chains, we aim to ensure that food is affordable and accessible for Filipino families, especially those most vulnerable to price shocks when disasters hit us."

Albay 2nd District Rep. Joey Salceda, an economist, also said that inflation was likely to end the year within target.

"This will also give the BSP license for further rate cuts, especially since expected OFW (overseas Filipino worker) remittances this December will give them some room on the currency strength side," he added.

While rice inflation "remains a fundamental problem," substantial import tariff cuts ordered in July "seems to have produced positive results, while keeping farmgate prices high for farmers."

WITH A REPORT FROM REINA TOLENTINO