Drop in rice costs retains lid on inflation

SOURCE: PHILIPPINE STATISTICS AUTHORITY

MANILA, Philippines – With costs of staples corresponding 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 common family generally buys was a big slowdown from the three.7 p.c recorded in the identical month final 12 months.

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 count on inflation for rice alone to be unfavourable till the top of this 12 months.

“However, there are gadgets like meat and fish, the place fee of value hikes are excessive. We’re taking a look at that, plus the impression of the transportation index through oil costs on the planet market,” he added.

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

PSA knowledge present {that a} predominant driver of inflation in June was quicker 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 Could.

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 Could.

“The sharp decline in meals inflation over the previous 12 months 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 Improvement Secretary Arsenio Balisacan mentioned in an announcement.

“We’ll maintain these interventions and complement them with focused initiatives to make sure a steady, secure provide and defend shoppers from future value pressures,” Balisacan mentioned.

He added that, to additional strengthen meals provide chains, the Division of Agriculture will intensify the implementation of trade restoration and growth packages, such because the Swine Trade Restoration Venture and Livestock Financial Enterprise Improvement.