Gov’t boosts farm aid to keep food prices stable

Finance Secretary Ralph G. Recto has assured the public that food prices will remain stable as the government expands production support amid weather-related inflationary pressures.

Headline inflation rose to 1.5% in August 2025 from 0.9% in July but remains well below the government’s annual target range of 2.0% to 4.0%.

The year-to-date average inflation rate stood at 1.7%, signaling continued price stability despite temporary spikes.

“Kahit napanatili natin ang mababang inflation, mas paiigtingin pa ng gobyerno ang mga hakbang para suportahan ang produksyon at upang makapaghanda nang mas maaga lalo na sa epekto ng masamang panahon sa ating mga pananim at pangingisda,” Secretary Recto said.

“Patuloy naming prayoridad na protektahan ang halaga ng bawat pisong kinikita ng bawat pamilyang Pilipino laban sa pagtaas ng mga pangunahing bilihin,” he added.

The August inflation uptick was mainly driven by higher food prices, particularly vegetables, which rose by 10.0% year-on-year from a previous decline of 4.7%, and fish, which increased to 9.5% from 6.3%.

Despite this, rice prices fell sharply by 17.0%, an even steeper drop than July’s 15.9% decline and the most significant since 1995.

The continued fall in rice prices helped ease the burden on low-income families, with inflation for the bottom 30% contracting by 0.6% in August, marking three straight months of relief.

To support producers and stabilize food supply, the Department of Agriculture (DA) distributed free seeds and seedlings for rice, corn, and vegetables, and deployed rice stocks from the National Food Authority (NFA) to affected areas.

Emergency relief was also accelerated through the Quick Response Fund (QRF), which includes zero-interest loans of up to PHP 25,000 via the Survival and Recovery (SURE) Loan Program from the Agricultural Credit Policy Council (ACPC).

The Philippine Crop Insurance Corporation (PCIC) continues to compensate insured farmers affected by the recent weather disturbances.

To improve long-term planning, the DA is set to launch a command center in November to enhance agricultural supply chain coordination and demand forecasting.

Outside of food, the Department of Energy (DOE) is advancing reforms to mitigate non-food inflation and manage energy costs.

These include the Net-Metering Advancement Program, which cuts rooftop solar permitting time from 360 days to 90 days.

The DOE is also expanding the Lifeline Rate Program, which increases electricity subsidies for low-income households.

Meanwhile, the Accelerated Power Plant Completion Program aims to bring 220 energy projects online by 2028 to increase supply and grid reliability.

To further reduce transport costs and import dependency, the DOE plans to expand electric vehicle (EV) infrastructure to 7,300 charging stations by 2028, up from 1,100 currently, under the Electric Vehicle Industry Development Act (EVIDA).

The Bangko Sentral ng Pilipinas (BSP) confirmed that the August inflation is within its forecast range of 1.0% to 1.8% and expects inflation to remain below the lower end of the target in 2025 due to declining rice prices.

For 2026 and 2027, inflation is projected to edge higher but stay within the 3.0% ± 1.0 percentage point target range.

The BSP noted that while domestic demand remains strong, international uncertainties, particularly U.S. policy impacts, may dampen global trade and economic momentum.

The Monetary Board emphasized that emerging risks to inflation and growth warrant close monitoring.

It said that monetary policy adjustments will be made as necessary to support price stability and sustained economic growth.