Drop in rice costs retains lid on inflation

SOURCE: PHILIPPINE STATISTICS AUTHORITY

MANILA, Philippines – With costs of staples comparable to rice falling at their steepest since 1995, inflation has remained inside goal, inching as much as 1.4 p.c year-on-year in June, in line with the Philippine Statistics Authority.

The June fee of improve within the costs of products that the typical family generally buys was a major slowdown from the three.7 p.c recorded in the identical month final yr.

The newest readout introduced common inflation for the primary semester of 2025 to 1.8 p.c.

READ: BSP pegs June inflation at 1.1-1.9%

That is under the goal vary of two p.c to 4 p.c, inside which the Bangko Sentral ng Pilipinas needs to shepherd inflation.

Nationwide Statistician Dennis Mapa mentioned in a press briefing on Friday that for staples like rice, costs have fallen at their steepest—14.3 p.c—since 1995.

Mapa mentioned they anticipate inflation for rice alone to be unfavorable till the tip of this yr.

“However, there are gadgets like meat and fish, the place fee of value hikes are excessive. We’re that, plus the affect of the transportation index by way of oil costs on the earth market,” he added.

The Philippine authorities is thus doubling down on interventions to assist ease value hikes for fundamental items, now including emphasis on nonfood gadgets.

PSA information present {that a} major driver of inflation in June was sooner value hikes in nonfood items.

Particularly, the index of housing, water, electrical energy, fuel and different fuels rose to three.2 p.c final month. This in contrast with 2.3 p.c in Might.

One other main driver was the slower annual lower within the transport index. This logged at -1.6 p.c in June from -2.4 p.c in Might.

“The sharp decline in meals inflation over the previous yr underscores the continued progress in our coordinated efforts to spice up native manufacturing, enhance logistics, and implement calibrated commerce and biosecurity measures,” Financial system, Planning, and Growth Secretary Arsenio Balisacan mentioned in an announcement.

“We are going to maintain these interventions and complement them with focused initiatives to make sure a steady, steady provide and protect customers from future value pressures,” Balisacan mentioned.

He added that, to additional strengthen meals provide chains, the Division of Agriculture will intensify the implementation of business restoration and growth packages, such because the Swine Business Restoration Mission and Livestock Financial Enterprise Growth.