Philippines Faces 15-Year High in Rice Inflation

The Philippines has experienced a sharp increase in the inflation rate for rice, hitting a 15-year peak in February, according to the Philippine Statistics Authority (PSA). The inflation rate for this essential food item accelerated to 23.7% from 22.6% in January, marking the fastest growth since February 2009, when it reached 24.6%.

National Statistician and PSA Chief, Claire Dennis Mapa, highlighted that the surge in rice prices is attributed to rising global market prices and constrained local supplies. The PSA noted a significant low base effect from January to July 2023, when rice inflation was relatively low, contributing to the steep increase.

In an analysis of rice price movements, the PSA observed substantial year-on-year increases across all main rice categories. The average price for regular milled rice jumped 27.2% to P50.44 per kilogram in February 2024, up from P39.65 per kilogram the previous year. Similarly, well-milled rice saw a 27.1% increase to P55.93 per kilogram, and special rice prices rose by 19.5% to P64.42 per kilogram.

Mapa warned that, without any price reduction or change in trend, high rice inflation could persist until July or August this year. However, there is a glimpse of hope as Arsenio Balisacan, Secretary of the National Economic and Development Authority, mentioned that international rice prices are beginning to stabilize, and local supply is expected to improve with the onset of the dry season harvest from March through April. Additionally, the Department of Agriculture is working with the International Rice Research Institute to enhance rice production in the country, aiming to alleviate the inflationary pressures on this staple food item.