Government Interventions Successfully Stabilize Rice Prices, Inflation Expected to Decline Further

In a significant development for the Philippines, the Department of Agriculture (DA) has reported a successful stabilization of rice prices, attributing the achievement to various government interventions led by President Ferdinand R. Marcos Jr. The DA’s optimism stems from a recent -2.3 percent deflation in rice prices in January, a sharp decline from the 0.08 percent recorded in December 2024, as reported by the Philippine Statistics Authority (PSA). This marks a notable turnaround from the high inflation rates that exceeded the government’s target of 4 percent from July 2023 to November 2024. Assistant Secretary Arnel De Mesa of the DA highlighted the gradual reduction in rice inflation, crediting the tariff reduction from 35 percent to 15 percent on imported rice, which began in July, as a key factor. Despite the slow pace of the decline compared to the initial spike, these measures have been effective in bringing down inflation from over 20 percent in early 2024 to 5.1 percent by November. De Mesa also pointed out the government’s success in achieving its target of lowering rice prices to between PHP6 and PHP7 per kilogram, a significant drop from the peak prices seen in 2023. The peak inflation rate for rice was recorded at 24 percent in March 2024, with prices for imported and local rice reaching highs of PHP65 and PHP61 per kilogram, respectively. Additional government initiatives, such as the Kadiwa ng Pangulo Rice for All and P29 programs, along with setting a maximum suggested retail price (MSRP) for imported rice, have contributed to the stabilization efforts. Looking forward, the DA remains confident that these interventions will continue to ease inflation in the coming months, with plans to release 150,000 metric tons of rice at PHP35 per kilogram from the National Food Authority’s stocks. The goal is to further reduce rice prices to between PHP41 and PHP45 per kilogram, aligning with the ongoing food security emergency declaration. As of the latest reports, rice prices in Metro Manila range from PHP37 to PHP58 per kilogram for both imported and local varieties.