The Philippine Statistics Authority on Wednesday credited the Department of Agriculture’s efforts to stabilize food prices, particularly rice, for the unexpected deceleration of February’s inflation rate, which fell below the central bank and financial market forecasts.
Economic Planning Assistant Secretary and Deputy National Statistician Divina Gracia del Prado said the implementation of the maximum suggested retail price (MSRP) on imported rice played a significant role in easing prices of the staple, which is a major component of the consumer basket. “We saw the impact of the MSRP on imported rice on retail prices,” del Prado said.
She also pointed to the food security emergency measures, which release rice buffer stocks from the National Food Authority at lower prices to local government units and other government agencies. Additionally, the Rice-for-All program under the Kadiwa ng Pangulo has been instrumental in softening rice prices. Del Prado suggested that a similar MSRP policy on pork could have the same effect on meat prices and, consequently, overall inflation.
For every P100 spent by the average Filipino consumer, around P9 goes toward rice, with poorer families spending up to P18 on the food staple.
“The slower inflation in February is an affirmation of the DA’s strategy to systematically stabilize the supply and prices of agricultural food products—one that minimizes industry disruptions by consulting with stakeholders as we guide food prices to more reasonable levels,” said Agriculture Secretary Francisco P. Tiu Laurel Jr.
“We will continue to engage with the various stakeholders in the agriculture sector as we refine our approach to ensuring food security in the country,” he added.
On Thursday, the DA chief is scheduled to meet with pork industry players, including traders and retailers, to discuss the potential implementation of an MSRP on pork to temper market prices.
Asked during a news conference about how an MSRP on pork could impact inflation, Deputy National Statistician del Prado stated that such a move could produce results similar to the MSRP on rice. “We expect that if an MSRP is implemented—and given all other things constant—it could slow down inflation on pork, even resulting in negative inflation,” she said. ### (Photo by: Joseph Henry Elamparo, DA-AFID)
