Agriculture Secretary Francisco P. Tiu Laurel, Jr. welcomed with guarded optimism the sharp slowdown in September inflation due to the decline in food prices, particularly rice.

Inflation in September decelerated to 1.9 percent, its slowest pace since the 1.6 percent recorded in May 2020 when the economy almost ground to a halt due to lockdowns imposed to slow the spread of the COVID-19 virus.

Food inflation played a key role in this overall deceleration, particularly the reduction in the inflation rate for rice, which dropped to 5.7 percent from 14.7 percent in August.

Rice, a staple in the consumer basket, accounts for 9 percent of the basket of goods and services used to track inflation rate for all consumers and double at 18 percent for families in the bottom 30 percent income bracket.

“Food prices have significantly declined from the highs posted in the same period last year, with vegetables such as onion and tomatoes, sugar, fish and rice leading the way with the help of various interventions of the Marcos administration,” said Secretary Tiu Laurel.

The DA chief said rice prices should also start reflecting the reduction in tariff on imported rice to 15 percent from 35 percent and the lifting of India’s export ban later this month. He cautioned, however, that the usually high demand ahead and during the Christmas season could temper the decline in food prices.

He said a more meaningful reduction in rice prices should be seen in January as rice inventory imported at higher prices and tariff are fully consumed. ###