Inflation Eases to 3.2% in 2024 Amid Gov’t Interventions

The Philippines’ average inflation rate dropped to 3.2% in 2024, a marked improvement from 6.0% in 2023 and 5.8% in 2022, according to Finance Secretary Ralph G. Recto.

Recto attributed the significant decline to government interventions that moderated rice prices and provided relief to low-income households.

“With the President’s decisive leadership, whole-of-government approach, and concerted efforts of stakeholders, we were able to manage the inflation to finally settle within our target after two years,” Recto said.

The Finance Secretary highlighted that rice inflation fell dramatically to 0.8% in December 2024, compared to 5.1% in November and a staggering 19.6% in December 2023.

Rice contributed only 0.07 percentage points, or 2.3%, to December 2024’s total inflation, down from 18.0% in November.

The moderation in rice prices followed the implementation of Executive Order (EO) No. 62 in July 2024, which reduced import tariffs on rice.

In the National Capital Region, the average retail price of imported rice dropped by PHP 4.07 per kilogram in the second half of December 2024 compared to June of the same year.

Low-income households benefitted significantly, with inflation for the bottom 30% declining to 2.5% in December 2024 from 2.9% in November and 5.0% in December 2023.

Food and non-alcoholic beverages, which make up 97.3% of the inflation downtrend for this group, saw notable price declines, particularly in rice.

Other sectors also experienced easing price increases, with annual inflation for housing, water, electricity, gas, and other fuels dropping to 1.7% in 2024 from 4.9% in 2023.

Government initiatives such as EO 50, which extended reduced tariff rates on rice, corn, and swine meat, contributed to the positive trend.

The falling prices in the international market further stabilized food costs, supporting the government’s inflation control efforts.

To sustain these gains, the government has extended the Rice Competitiveness Enhancement Fund (RCEF) under Republic Act No. 12078 until 2031, tripling its annual allocation to PHP 30 billion.

Programs like “Sulit” and “Nutri” rice aim to provide affordable and nutritious rice to consumers, alongside the expansion of Kadiwa ng Pangulo sites to 300 by mid-2025.

Non-food inflation measures included staggered electricity rate hikes and a lifeline program offering higher water service discounts for low-income families.

These developments may allow the Bangko Sentral ng Pilipinas (BSP) to consider easing monetary policies further.

“The sustained moderation in rice prices is particularly a welcome relief especially to our lower-income households and highlights the positive impact of our interventions,” Recto said.