The National Economic and Development Authority (NEDA) 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, as inflation in January 2024 further eased to its lowest since October 2020.
The Philippine Statistics Authority reported the country’s inflation rate significantly slowed to 2.8% in January 2024 from 3.9% in December 2023 to 8.7% in the same period last year. This is the lowest recorded since the 2.3% inflation rate registered in October 2020.
The most significant contributor to the lower inflation rate is the easing of food inflation to 3.3% from last month’s 5.5% due to the decrease in the prices of corn (-4.3% from -3.5%), oils and fats (-4.3% from -3.6%), meat (-0.7% from 0.2%), and sugar (-1.0% from 0.1). Rice inflation, however, accelerated to 22.6% in January from 19.6% in the previous month.
NEDA Secretary Arsenio M. 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 President Ferdinand R. Marcos Jr. 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 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 Marcos Jr. issued Executive Order No. 50, extending the reduced tariff rates of pork, corn, and rice until the end of 2024. He also reactivated the Task Force El Niño through Executive Order No. 53, which tasks concerned agencies to intensify the government’s efforts to secure sufficient water and food supply, power, health, and public safety nationwide.
The President also directed concerned 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 continuously monitor on-the-ground situations and adequately 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.
