Rice Prices Drop, Inflation Stays on Target

Government measures to stabilize rice prices and mitigate inflationary pressures have kept the Philippines’ year-to-date inflation rate at 3.2 percent, well within the government’s 2 to 4 percent target range, the National Economic and Development Authority (NEDA) announced Thursday.

Rice inflation decreased significantly to 5.1 percent in November from 9.6 percent in October, according to the Philippine Statistics Authority (PSA). This improvement helped offset the slight rise in overall inflation to 2.5 percent in November from 2.3 percent in October.

“Despite the strong typhoons our country faced in recent months, consumer prices have remained relatively stable. This demonstrates the resilience of our economy and the effectiveness of our policies,” said NEDA Secretary Arsenio Balisacan.

The decline in rice prices follows the implementation of Executive Order No. 62 in July 2024, which lowered import tariffs on rice.

Average retail prices for imported rice dropped by PHP 3.65 per kilogram in November compared to pre-implementation levels.

Finance Secretary Ralph Recto underscored the government’s success in managing inflation despite challenges from successive typhoons.

“Patuloy po ang pagtulong ng gobyerno para siguruhing mabilis na makakaahon ang mga naapektuhan ng mga nagdaang bagyo at maging mas abot-kaya ang mga bilihin lalo na sa paparating na Pasko,” Recto said.

Vegetable inflation rose to 5.9 percent in November from a deflation of -9.2 percent in October due to supply chain disruptions caused by typhoons.

Food inflation also increased to 3.5 percent from 3.0 percent in the same period.

To support consumers, the Department of Agriculture (DA) will expand its Kadiwa Rice-for-All program to provide more affordable options and mitigate elevated food prices.

The program will be implemented in public markets nationwide.

Additionally, the DA has launched initiatives to combat African Swine Fever and Avian Influenza, including updated guidelines for vaccine distribution and enhanced biosecurity measures for affected hog raisers.

The Development Budget Coordination Committee (DBCC) projected full-year 2024 inflation to average between 3.1 and 3.3 percent, significantly lower than the 6.0 percent average in 2023. The DBCC also maintained the inflation target of 2 to 4 percent for 2025 to 2028.

To sustain the downward trend in rice prices, the Department of Finance (DOF) has urged traders to pass on tariff reductions to consumers. The government is also advocating the extension of the Rice Competitiveness Enhancement Fund (RCEF) until 2031 to boost local rice production and support farmers.

As the holiday season approaches, the Department of Trade and Industry (DTI) released its 2024 Noche Buena Price Guide, listing affordable options for consumers across 12 categories of holiday staples.

“Through the timely and strategic use of our various policy levers, a whole-of-government approach is vital to sustain our momentum in effectively managing inflation,” Balisacan said, emphasizing the government’s commitment to inclusive economic growth and poverty reduction.