In January, the Philippines experienced a consistent inflation rate of 2.9%, mirroring the figure from December 2024. This stability comes as rice prices fell, counteracting rises in other food categories. The Philippine Statistics Authority reported a significant deflation in rice prices at -2.3%, the lowest since June 2020, which contributed to maintaining the overall inflation rate.
Despite the drop in rice prices, food inflation climbed to 4% from 3.5% the previous month, driven by increased costs in vegetables, tubers, plantains, cooking bananas, pulses, fish, seafood, and meat. Notably, the price of regular milled rice decreased to PHP48.25 per kilogram from PHP49.65, while well-milled and special rice also saw reductions.
Other sectors experienced varied inflation rates, with decreases in housing, utilities, and restaurant services helping to balance the overall inflation figure. The National Economic and Development Authority (NEDA) praised the steady inflation rate as a sign of the government’s commitment to price stability, aligning with the Philippine Development Plan 2023-2028.
To address rice affordability, the Department of Agriculture, backed by the National Price Coordinating Council, declared a food security emergency, enabling the sale of rice buffer stocks at reduced prices. Additionally, the DA is taking measures to mitigate the impact of La Niña, including improving water management and providing agricultural inputs.
Efforts are also underway to combat African swine fever and Avian Influenza, with the DA accelerating vaccination campaigns and working on vaccine approvals. NEDA Secretary Arsenio Balisacan emphasized the government’s vigilance and proactive approach to maintaining low and stable prices, highlighting investments in the power industry to reduce electricity costs.
Albay Representative Joey Salceda described the inflation as ‘well under control’ and predicted it would stay within the government’s target range for the first quarter of 2025. However, he expressed concerns about the high inflation rate for meat, linked to ongoing recovery from African Swine Fever and the looming threat of Avian Influenza. Salceda also highlighted the importance of addressing corn prices, given their impact on meat and fish production, and stressed the need for legislative action on the Livestock, Poultry, and Dairy Competitiveness Act.