The Philippine Ports Authority (PPA) said the steady port charges have contributed to a decrease in the general cost of goods and services in the Philippines.
According to data from the Philippine Statistics Authority, the lower inflation rate in August was primarily driven by a decrease in transportation and logistics costs.
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.
“The Philippine 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,” PPA said.
“The reduction in congestion has allowed for quicker delivery times and reduced fuel consumption,” it added.
Additionally, PPA said the steady port tariffs have helped create a more predictable cost structure for businesses reliant on imports and exports.
“As logistics costs declined, consumer prices in various sectors also stabilized. 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.
“The government’s commitment to keeping transport fees competitive has added a layer of predictability for businesses, encouraging more efficient operations,” PPA added.
PPA, however, said challenges remain on the horizon because of global uncertainties, such as supply chain disruptions, fluctuating fuel prices, and geopolitical tensions that could potentially reverse this trend.
“Economists caution that while the current slowdown in inflation is promising, vigilance is necessary. The government must continue its efforts to boost economic resilience, address food security concerns, and keep inflation under control to avoid potential price shocks,” PPA said.
