THE Philippine Statistics Authority (PSA) said the country’s inflation rate dropped to 2.8 percent in the first month of the year from its December 2023 showing of 3.9 percent and is significantly lower than the 8.7 percent inflation rate recorded in January 2023.
This 2.8 percent inflation is the lowest since the 2.3 percent inflation rate recorded in October 2020.
The National Economic and Development Authority (NEDA) meanwhile assured the public today that the government would continue monitoring food supply and prices in the country in anticipation of the El Niño phenomenon spreading across more areas.
The most significant contributor to the lower inflation rate is the easing of food inflation to 3.3 percent from last month’s 5.5 percent due to the decrease in the prices of corn (-4.3 percent from -3.5 percent), oils and fats (-4.3 percent from -3.6 percent), meat (-0.7 percent from 0.2 percent), and sugar (-1.0 percent from 0.1 percent). Rice inflation, however, accelerated to 22.6 percent in January from 19.6 percent in the previous month.
NEDA Secretary Arsenio Balisacan said the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) will continue to closely monitor the prices of rice and other goods to provide the President and the Cabinet with timely and appropriate policy recommendations and ensure stable and affordable prices of commodities.
He added that with the El Niño lingering until May, “we (will) introduce stop-gap measures, as necessary, such as allowing further imports on key commodities until our supply stabilizes at prices affordable to consumers while ensuring remunerative prices for local producers.”
Earlier, President Ferdinand Marcos Jr. issued Executive Order No. 50 that will extend until the end of 2024 the reduced tariff rates of pork, corn, and rice. He also reactivated Task Force El Niño through Executive Order No. 53, where concerned agencies are tasked to intensify the government’s efforts to secure sufficient water and food supply, power, health, and public safety nationwide.
The President also directed these agencies to implement the National Adaptation Plan (NAP) 2023-2050 to increase communities’ resilience against extreme weather disturbances.
Balisacan said the Department of Agriculture would constantly monitor on-the-ground situations and guide the government in addressing food production concerns. The Philippines also recently signed a Memorandum of Understanding with Vietnam for the continuous supply of at least 1.5 to 2 million metric tons of rice annually.
Moreover, the Department of Social Welfare and Development will expand its National Food Stamp program to cover 300,000 households in 2024. He said this measure will help the government assist the most vulnerable families during the El Niño season.