Manila, Philippines – Albay Representative Joey Salceda welcomed the latest inflation data for November, noting that the country is on track to achieve the government’s 2-4% inflation target for 2024. However, Salceda emphasized the need for continued efforts to lower food prices, particularly through the work of the House Murang Pagkain Supercommittee.
Salceda highlighted a decline in the month-on-month inflation rates for rice and corn, attributing it to easing pressures in the global grains market. He pointed out, however, that the reduction in local rice prices has been slower than expected, despite government measures such as the reduction of rice tariffs.
“Month-on-month, world rice prices have dropped by as much as 11%, and with imports comprising a significant portion of our supply, at least a third of this decline should be reflected in local market prices,” Salceda stated.
The lawmaker noted that current retail prices of rice remain higher than they should be. “Rice retail prices should be closer to P40 than P50, given the decline in world prices and tariffs. In Indonesia, which faces similar challenges in logistics and border issues, retail prices have dropped to around P44 per kilo. We should aim for the same.”
Salceda added that achieving such price levels could have significantly reduced overall inflation. He estimated that if rice prices had dropped accordingly, year-on-year rice inflation could have fallen to -2.2%, bringing overall inflation to as low as 1.6%.
To address the issue, the Murang Pagkain Supercommittee plans to summon top rice importers next week. “The landed price of imported rice, including all tariffs and fees, is now around P36 per kilo. Domestically-milled rice should be at the same level, given current farmgate prices. Yet, traders are making margins of up to P14 per kilo. We need to find ways to lower this,” Salceda said.
The committee also plans to send policy recommendations to President Ferdinand Marcos Jr. by year-end, focusing on measures to reduce the cost of food for Filipino families.
While the inflation outlook is positive, Salceda stressed the need for vigilance and decisive action. “The progress is encouraging, but there’s still much work to be done to ensure affordable food prices for all Filipinos,” he concluded.