The deflation of rice prices in January reflects the effectiveness of the Marcos administration’s measures to stabilize the country’s staple food prices, Agriculture Secretary Francisco P. Tiu Laurel Jr. said on Wednesday.
According to the Philippine Statistics Authority (PSA), rice inflation in January was at minus 2.3 percent year-on-year and was at negative 0.9 percent compared to December, helping keep a lid on overall inflation rate steady at 2.9 percent for the month—the same pace in December.
“This is the lowest inflation rate for rice since June 2020, when we had a minus 2.8 percent,” said Economic Planning Undersecretary and National Statistician Dennis Mapa as he announced inflation data for January. He added that current price trends suggest the deflation in rice prices will to continue through July.
The deflation in rice prices in January was the first since the 0.1 percent decline in December 2021.
“This is welcome news. It clearly shows that the efforts of President Bongbong Marcos, particularly the sharp tariff reduction last year, are steps in the right direction,” Sec. Tiu Laurel said.
In July 2024, President Marcos reduced rice import tariffs from 35 percent to 15 percent while directing the Department of Agriculture (DA) to provide affordable rice through programs like KADIWA ng Pangulo and Rice-for-All. These initiatives helped ease price pressures on consumers.
To further support price stability, the DA set a new maximum suggested retail price (MSRP) for imported rice at P55 per kilo, down from P58 per kilo. Additionally, Sec. Tiu Laurel declared a food security emergency, which will release National Food Authority (NFA) stocks to be sold at P35 per kilo through government entities.
PSA data also showed that well-milled rice averaged P54.63 per kilo in the second half of January, a slight decrease from P54.97 per kilo in December. In January 2024, the average price stood at P55.50 per kilo.
Rice accounts for about 9 percent of the average consumer basket, a figure that rises to 18 percent for the country’s poorest households, making price stability crucial for food security.
The DA is now looking at prices of other food items, particularly pork, to arrest increases that could undermine inflation outlook and food security. ###
