The Philippine Ports Authority (PPA) said a reduction in transportation and logistical cost has helped tame inflation in August.
Citing data from the Philippine Statistics Authority (PSA), PPA said inflation decelerated “as transport expenses fell, helping temper the overall cost of goods and services.”
“The transport index, which saw a 3.6 percent annual increase in July, recorded a 0.2 percent decline in August. This shift was largely influenced by several factors, including lower fuel prices, improved transportation efficiency, and competitive tariffs in the logistics sector. These developments have been crucial in easing the cost of moving goods, benefiting both businesses and consumers,” PPA said.
“The government’s infrastructure improvements have also played a key role in reducing transportation costs. Investments in road networks, enhanced public transportation systems, and upgrades to port facilities have contributed to smoother traffic flow and faster logistics operations. The reduction in congestion has allowed for quicker delivery times and reduced fuel consumption,” it added.
It also noted the steady port tariffs which helped create a more predictable cost structure for businesses reliant on imports and exports.
PPA said products ranging from food to electronics benefited from lower transportation costs, keeping prices in check despite persistent global inflationary pressures.
“For low-income households, which are particularly vulnerable to inflation, the easing of transport costs has provided some relief, especially in basic necessities like food and essential goods,” it said.
PPA noted the government’s commitment to keeping transport fees competitive, which has added a layer of predictability for businesses, encouraging more efficient operations.
“By stabilizing food prices through initiatives aimed at increasing agricultural productivity, the government has also helped ensure that essential items remain accessible to the public. These efforts have been instrumental in softening inflation’s impact on Filipino families,” it added.
PPA said the decline in logistics costs offered some “breathing room” for the public and the businesses.
“While inflation remains a concern, particularly with ongoing global uncertainties, the drop in transport costs is a positive step toward managing price levels and supporting economic stability. As the government moves forward with infrastructure projects and economic reforms, the outlook for inflation control remains hopeful,” PPA added.
