Archives: Business World Article

The Department of Trade and Industry (DTI) released its price guide for items typically consumed during the traditional Christmas feast, which reflected increases for 95 food items.

“Of the 256 holiday food items across 14 categories, 129 retained their prices, while 95 posted minimal increases due to higher costs of ingredients, packaging, and labor,” the DT said in a statement accompanying the 2025 Noche Buena price guide.

The price guide lists suggested retail prices for supermarkets and groceries and will be in effect until Dec. 31.

Prices rose for some ham products in the guide, but most prices were maintained, the DTI said.

Prices of two stock-keeping units (SKUs) of fruit cocktail held steady, while prices were adjusted for five others.

Meanwhile, prices held steady for only one of the 12 spaghetti sauce items, while two of the 15 tomato sauce SKUs were also maintained.

This year, the list included new items such as nata de coco and kaong, which the department said reflects the growing demand for dessert ingredients.

“Meanwhile, DTI also secured price rollbacks on six items after consultations with manufacturers,” it added.

These include 500-gram CDO American Style Ham, which saw a four-peso rollback to PHP 170; 800-gram and 1-kilogram King Sue Piña Ham, which had a PHP 7 and PHP 6 price decrease to PHP 520 and PHP 637, respectively; and 800-gram King Sue Sweet, which is one peso cheaper at PHP 449.

The price of 500-gram Danes Queso de Bola, a type of Edam cheese, saw a PHP 10 rollback to PHP 300, while 500-gram Sunshine Sweet Style Spaghetti Sauce had a P3.5 decrease to PHP 48.50.

“With these adjustments, four ham products reverted to their 2024 prices, while select queso de bola and spaghetti sauce will now be sold at prices even lower than last year,” DTI said.

Trade Secretary Ma. Cristina A. Roque said the DTI “continues to carry out the President’s call to keep basic necessities and price commodities and holiday goods within reach of families.” – Justine Irish DP Table

Philexport calls for more export promotion funding

The national government should allocate more funds to export promotion and micro, small, and medium enterprise (MSME) development, the Philippine Exporters Confederation, Inc. (Philexport) said.

In a statement sent over the weekend, Philexport President Sergio R. Ortiz-Luis Jr. urged the Marcos government not to reduce public spending in the wake of the corruption issues around flood control projects.

Instead, he said that the government should “allocate more funds where they are badly needed, like export promotion and MSME development—two key sectors that can help revive the country’s slowing economy.”

He described the cutting down on government spending as “unwise,” noting that the money spent on flood control projects did not go where it was intended for.

“The government spending that was cut was probably the ones that were lost to floods anyway, so they don’t really go to the economy,” he said.

“We are hoping that [much] of this budget that was lost may go to… export as an investment—because we have not been investing in export—and to the SMEs,” he added. — Justine Irish D.  Tabile

The Philippines’ unemployment rate rose to 3.8% in September from a year earlier, signaling a fragile labor recovery as natural disasters disrupted hiring ahead of the holiday season, data from the Philippine Statistics Authority (PSA) showed on Thursday.

About 1.96 million Filipinos were jobless during the month, up from 1.89 million a year earlier, when the jobless rate was 3.7%, National Statistician Claire Dennis S. Mapa told a news briefing, citing the impact of typhoons and earthquakes on employment.

Despite this, Labor Secretary Bienvenido E. Laguesma told BusinessWorld that he is “hopeful” the upcoming holiday period will spur hiring activity.

The latest jobless rate was an improvement from August’s 3.9%, when 2.03 million were out of work.

Employment stood at 49.6 million in September, slightly below September 2024’s 49.87 million.

“[Holiday hiring] usually starts in the month of September, but the pickup typically happens in the fourth quarter,” Mr. Mapa said in Filipino, noting the October results will show if hiring activity indeed picked up.

“There’s a substantial seasonality component during the fourth quarter,” he added.

For the first nine months, joblessness stood at 4.1%, a tad higher compared to the same period last year of 4%.

The other service activities industry posted the largest drop in employment annually, shedding 493,000 workers, followed by administrative and support service activities (-356,000), manufacturing (-302,000), transportation and storage (-233,000), and public administration and defense and compulsory social security (-220,000).

On a monthly basis, the other service activity industries lost 498,000 workers, followed by construction (-308,000), transportation and storage (-247,000), and financial and insurance activities (-105,000).

Explaining the almost half-a-million month-on-month drop in the other service activities sector, Mr. Mapa said this might be tied to household income.

“I can surmise that this is possibly related to household income,” he said in Filipino, noting that during the first and second quarters of the year, there was a substantial increase in domestic services. “Usually, when the income is a bit higher, this number also tends to be higher.”

For the job losses in the manufacturing industry, Mr. Mapa said this may be due to global trade uncertainty.

Job losses were seen in the areas of ready-made embroidered garments manufacturing, manufacture of electronic walls and tubes, and manufacturing of parts and accessories for motor vehicles.

Mr. Mapa noted that the manufacturing sector saw jobs decline by around 208,000 workers in the first nine months of the year.

“It’s possible that this is linked to our exports, since most of our manufacturing companies export their products — and we’re currently facing problems in global trade,” he said.

In August, the US began imposing a 19% tariff on most Philippine-made goods.

Meanwhile, employment rate stood at 96.2% in September, a tad lower than 96.3% in the same period last year.

This means 49.6 million Filipinos had jobs in September, which was lower compared to 49.87 million last year.

For the first nine months of 2025, the employment rate averaged at 95.9%, slightly lower than last year’s 96%.

The construction industry had the most job gains in September, adding 514,000 employees, followed by fishing and aquaculture (+313,000), accommodation and food service activities (+307,000), human health and social work activities (+183,000), and agriculture and forestry (+126,000).

Craft and related trades workers added 280,000 workers annually, while elementary occupations added 119,000 jobs.

Compared to August 2025, 280,000 managerial jobs were added in September, followed by clerical support workers (+138,000) and technicians and associate professionals (+104,000).

Underemployment

Job quality strengthened year on year as the underemployment rate — the share of workers seeking more hours or jobs — eased to 11.1% from 11.9% a year ago. However, it worsened from 10.7% in August due to slower activity in construction.

The labor force participation rate slipped to 64.5% in September from 65.7% a year earlier, translating to 208,000 fewer people in the workforce, the PSA reported.

Roughly 572,000 workers also left the labor force month on month.

Employment in the Philippines’ construction industry increased in September, but many workers were unable to work full-time as underemployment rose, according to Mr. Mapa.

Mr. Mapa said the impact of ongoing investigations into anomalous flood control projects is not yet fully reflected in labor force data. He noted government spending and project disbursements are captured in the gross domestic product report, which will be released on Friday.

“What we’re seeing in the labor force data is an increase in workers in the construction industry. Year-on-year — from January to September — there was a slight increase. However, we also observed a rise in underemployment,” Mr. Mapa told reporters after the briefing in mixed English and Filipino.

“When underemployment increases, it means that not all workers in that industry were able to work full-time, say 40 hours a week; some may have only worked on specific days or for fewer hours.”

Outlook

In a note, Chinabank Research said September jobs data suggest the labor market remains “robust.”

“This fourth quarter, we could see better employment numbers, driven by an expected increase in demand as the holidays approach, though weather-related disruptions and external challenges could temper these gains,” it said.

Chinabank said there may be a seasonal boost in employment during the holidays, particularly in retail and tourism-related sectors like accommodation and food services.

“Potentially softer external demand amid steep US tariffs remains a risk to manufacturing activity and jobs. Additionally, weather disturbances and calamities could lead to job losses in affected areas,” it said.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco warned that the Philippine labor market is suffering from a “double whammy” of climate impact and corruption.

“More Filipinos out of work due to natural disasters and the flood control ban, not just year on year but also month on month. If we add the half million who left the work force to the 1.96 million who are technically unemployed, that is much more than the 2.03 officially jobless in August,” he said via Messenger.

Mr. Velasco warned that the ongoing political and environmental crises will prolong the labor slump unless the government takes deliberate action.

“If the private sector is not providing enough jobs, then the government must take up the slack.” — Chloe Mari A. Hufana, Reporter

The government is betting that its PHP 1.31-trillion programmed spending for the fourth quarter will lift full-year economic growth this year, Budget Secretary Amenah F. Pangandaman said on Thursday.

The Department of Budget and Management (DBM) has programmed PHP 1.31 trillion for disbursement during the October-to-December period.

“Our programmed spending for the fourth quarter will boost year-end economic growth and thus impact overall economic growth for the year,” Ms. Pangandaman, who also serves as the Development Budget Coordination Committee chairperson said.

In the first six months of 2025, the gross domestic product grew by 5.4%, slightly below the government’s 5.5% to 6.5% growth goal. 

The third-quarter data will be released on Nov. 7.

However, the economy faces a possible slowdown as government spending is affected by a widening corruption scandal.

Ms. Pangandaman has said the slowdown in public infrastructure spending is temporary, with spending expected to “catch up” in the remaining months of the year.

The bulk of the amount allocated for social services, following President Ferdinand R. Marcos, Jr.’s directive “to ensure that spending for the final stretch of 2025 directly benefits the Filipino people,” the DBM said.

The DBM said PHP 2.74 billion was allotted for the National Disaster Risk Reduction and Management Fund (NDRRMF), which will go to the Quick Response Fund (QRF), as well as emergency cash transfers.

QRFs are built-in budgetary allocations that represent pre-disaster or standby funds for agencies in order to immediately assist areas stricken by catastrophes and crises.

In addition, the DBM released PHP 9.52 billion to the Department of Social Welfare and Development to fund key social protection programs, including the remaining balance for the Pantawid Pamilyang Pilipino Program (4Ps).

It also disbursed PHP 7.03 billion for payouts under the Assistance to Individuals in Crisis Situation (AICS), PHP 5.77 billion for social pensions for indigent senior citizens, and PHP 4.83 billion for the social aid program Ayuda sa Kapos ang Kita (AKAP).

In addition, the Department of Agriculture has been allocated PHP 7.33 billion for the National Rice Program, and PHP 2.47 billion for the National Livestock Program.

“Another PHP 2.29 billion is also available under the National Food Authority for the buffer stocking program and targeted rice distribution program to ensure the availability of rice, especially in case of unforeseen domestic and global headwinds,” it said. 

For the education sector, the DBM released PHP 203.82 billion for the Department of Education for the fourth quarter, with PHP 153.71 billion allocated for benefits and year-end bonus of teachers and personnel. An additional PHP 11.4 billion has been disbursed for the Salary Standardization Law adjustments.

Meanwhile, PHP 23.62 billion is released for the operations of schools, while PHP 32.79 billion is earmarked for government assistance and subsidies.

State Universities and Colleges and the Commission on Higher Education received PHP 31.78 billion, which will fund the implementation of key higher education programs and funding of personnel benefits and requirements.

For the labor sector, the DBM disbursed PHP 4.89 billion for the Department of Labor and Employment’s livelihood and emergency employment programs.

Meanwhile, the healthcare sector received PHP 4.3 billion for the support of operational expenses of hospitals in Metro Manila and PHP 9.96 billion for regional hospitals.

The DBM also released PHP 787.95 million worth of subsidies under the Medical Assistance to Indigent and Financially-Incapacitated Patients and another PHP 179 million for the Cancer Assistance Fund.

In addition, PHP 528.09 million has been earmarked for Department of Migrant Workers’ programs such as the Overseas Filipino Workers Hospital, the Agarang Kalinga at Saklolo para sa mga OFWs na Nangangailan Fund, and the National Reintegration Center for OFWS.

Out of this fund, PHP 321 million has been allotted for the Emergency Repatriation Program of the Overseas Workers Welfare Association.

In a separate statement on Thursday, the Department of Finance said the government will disburse PHP 63.69 billion in year-end bonuses and PHP 9.24 billion in cash gifts to over 1.85 million state employees nationwide.

As of Oct. 27, the DBM has already disbursed PHP 1.133 trillion of Notices of Cash Allocations out of the PHP 1.307-trillion program for the fourth quarter. — Aubrey Rose A. Inosante

Philippine headline inflation steadied in October as slower price increases in vegetables and meat offset higher utility costs during the month, the Philippine Statistics Authority (PSA) said on Wednesday.

PSA data showed that the consumer price index (CPI) stood at 1.7% in October, unchanged from September’s print but eased from 2.3% a year ago.   

This was a tad slower than the 1.8% median forecast from a BusinessWorld poll of 17 analysts conducted last week, but within the Bangko Sentral ng Pilipinas’ (BSP) 1.4-2.2% forecast.

October also marked the eighth straight month that inflation fell below the central bank’s 2-4% target band.   

In the 10 months to October, average inflation matched the BSP’s full-year target of 1.7%.

Meanwhile, core inflation, which discounts volatile prices of food and fuel, eased to 2.5% from 2.6% in September. Still, it was slightly faster than the 2.4% print in October 2024. 

This brought year-to-date core inflation to 2.4%, easing from the 3.1% clip seen in the comparable year-ago period.

Housing, water, electricity, gas and other fuels contributed most to the CPI during the month and posted a 2.7% inflation rate, National Statistician Claire Dennis S. Mapa said.

Electricity alone posted a 4.1% inflation in October, accelerating from the 1.2% clip seen in September. 

In October, the Manila Electric Co. hiked the overall electricity rate by PHP 0.2331 per kilowatt-hour (kWh) to PHP 13.3182 per kWh. This means residential customers consuming 200 kWh had to pay an additional PHP 47 in their bill last month. 

Meanwhile, inflation for water supply also quickened to 5.7% in October from 5.3% a month earlier.

In September, the Metropolitan Waterworks and Sewerage System okayed the proposed P0.14 per cubic meter (cu.m.) hike for Maynilad and a P0.15 per cu.m. rollback for Manila Water for the October-December period.

Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said the government’s efforts to manage supply conditions and ensure price stability helped inflation hold steady in October.   

“The steady headline inflation rate shows that our coordinated interventions are helping to maintain adequate supplies and keeping essential goods affordable,” he said in a statement. “We remain vigilant in managing risks from weather disturbances, global market volatility, and other domestic factors that may affect prices in the coming months.”

Meanwhile, slower inflation for food and non-alcoholic beverages tempered inflationary pressures in October.

The heavily weighted food and nonalcoholic beverage index eased to 0.5% in October from the 1% clip logged the month earlier.

“Our food basket, food and non-alcoholic beverages, has the biggest weight in the inflation basket at 37.75% more or less,” Mr. Mapa said.

Food inflation slowed year on year to 0.3% from 0.8% the previous month and 3% in October 2024. 

This came as inflation for vegetables, tubers, plantains, cooking bananas and pulses eased to 16.6% from 19.4% in September.

Likewise, the PSA recorded slower inflation for meat and other parts of slaughtered land animals in October at 5.2% from 6% a month ago.

However, Mr. Mapa noted that inflationary pressures from food remain as prices of fish and other seafood picked up to 8.2% from 7.9% in September.

Rice prices

Rice inflation remained in the negative for the tenth month in a row at -17% in October from -16.9% in September.

Mr. Mapa said rice prices continued to decline amid increased unmilled rice production in the last quarter of the year.

“Our production is high, but of course, prices in the world market are also starting to drop. So that actually affected, in a good manner, our retail rice prices, because it continues to decline,” he said in Filipino.

Citing PSA data, Mr. Mapa said a kilo of regular-milled rice was sold at an average price of PHP 40.09 in October, dropping by 20.2% from PHP 50.22 a year ago. Well-milled rice was also cheaper at an average PHP 46.49 per kilo, down 15.9% from PHP 55.28 last year. Meanwhile, special rice was priced at PHP 56.39 per kilo last month, falling by 11.8% from PHP 63.97 in October 2024.

“Despite the import ban on rice, the price of the grain was largely stable while meat and dairy prices eased, offsetting the increase in utility rates,” Aris D. Dacanay, economist for the Association of Southeast Asian Nations at HSBC Global Investment Research, said in an e-mailed note.

Earlier, President Ferdinand R. Marcos, Jr. ordered a 60-day freeze on regular and well-milled rice imports from Sept. 1 to Nov. 2 to support local farmers amid the harvest season and to stabilize rice prices.

The suspension has been extended until yearend, with the government eyeing to open an import window in January before reimposing the ban from February to April.

Meanwhile, PSA data also showed that inflation in the National Capital Region (NCR) picked up to 2.9% in October from 2.7% in the previous month and 1.4% in the same month in 2024.

Outside NCR, inflation eased to 1.3% from 1.5% in September and the 2.6% clip a year ago.

Central Visayas still saw the highest inflation print among other regions at 2.6%, while prices in Bangsamoro Autonomous Region in Muslim Mindanao declined the fastest at -1.3%.   

Inflation for the bottom 30% of income households declined at a faster pace of -0.4% in October from -0.2% in September. For the 10-month period, it averaged 0.3%, slower than 4.5% a year ago.

Inflation ahead

The BSP still sees inflation settling below its 2-4% target by yearend, citing the recent easing of rice prices in the country.

“Inflation is projected to average below the low end of the target range in 2025, primarily due to the easing of rice prices in previous months,” it said in a statement. “The risks to the inflation outlook are limited as price pressures are expected to ease amid stabilizing global commodity prices.”

However, the central bank said the outlook for domestic economic growth has weakened.

“This outlook reflects in part the impact on business confidence of governance concerns about public infrastructure spending. Indications of slowing demand also reflect lingering uncertainty from the external environment,” the BSP said.

For November, Mr. Mapa said fuel prices will likely drive up inflationary pressures following the latest pump price adjustment.

Oil firms in the country implemented fuel price hikes on Tuesday, amounting to PHP 1.70 per liter for gasoline, PHP 2.70 per liter for diesel and PHP 2.10 per liter for kerosene.

Mr. Mapa said they will continue to monitor the impact of recent typhoons on consumer prices, as well as Mr. Marcos’ earlier directive to impose a price freeze on basic and prime commodities until yearend.

“There are threats to overall food inflation. Some items are increasing, (such as) the price of fish (and) vegetable,” Mr. Mapa said, noting vegetable prices are sensitive to weather conditions.

In a note on Wednesday, Chinabank Research said inflation will likely remain low in the coming months, but noted that pump price adjustments and the weather’s impact on food prices still pose risks.   

“We expect overall inflation to remain low for the rest of the year, though upward price pressures may arise from energy — a hefty increase in local pump prices was announced this week — as well as from weather-sensitive food prices,” it said.

Meanwhile, HSBC’s Mr. Dacanay said the benign inflation and clearer rice policies could push the BSP to cut rates by 25 basis points (bps) in December.

“All in all, we think October inflation plus the clarity over rice policies strengthen the case for a December rate cut by the BSP,” he said. “With no issues in inflation, monetary policy has the runway to pump the economy to, hopefully, offset the fiscal fallout brought by a sharp drop in public infrastructure spending.”

Since it began its easing cycle in August 2024, the Monetary Board has cut its key policy rate by 175 bps to a three-year low of 4.75%. 

BSP Governor Eli M. Remolona, Jr. has signaled further easing until early next year to support the economy as the ongoing flood control anomalies have hit business sentiment, clouding their growth outlook.   

The Monetary Board will hold its last rate-setting meeting this year on Dec. 11. — Katherine K. Chan