Rice Inflation Drops to 5.7% in September

The inflation rate for rice, a critical food staple in the Philippines, dropped to 5.7% in September, down significantly from 14.7% in August, according to data from the Philippine Statistics Authority (PSA). This marked the lowest rice inflation since July 2023, when it stood at 4.2%.

The easing inflation is attributed to a combination of base effects and the impact of reduced tariffs on imported rice, which came into effect in July 2024. National Statistician Claire Dennis Mapa noted that the PSA had anticipated this decline, expecting rice inflation to slow in the latter half of 2024 following its upward trend in August 2023.

“We have been saying before that we will be experiencing a slowdown starting August, September (onwards) in the price of rice in particular,” Mapa said during a press conference.

The drop in rice inflation follows Executive Order No. 62, issued by President Ferdinand Marcos Jr. in June 2024, which lowered the tariff rate on imported rice from 35% to 15%. National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan emphasized the importance of this tariff reduction while also advocating for continued support for local rice production through increased agricultural funding.

The average prices of rice at the national level in September reflect this trend:

• Regular milled rice: ₱50.47 per kilo, down from ₱50.66 in August
• Well-milled rice: ₱55.51 per kilo, down from ₱55.85
• Special rice: ₱64.05 per kilo, slightly down from ₱64.08

Overall inflation in the Philippines also eased in September, slowing to 1.9%, its lowest rate in over four years, primarily due to slower price growth in food, transportation, and utilities.