January inflation fell to 2.8%

This figure represents a deceleration from the 3.9% reported in December 2023 and the 8.7% noted in the same month the previous year.

The National Economic and Development Authority (NEDA) reassured the public of the government’s commitment to monitoring food supply and prices in anticipation of the El Niño phenomenon spreading across more areas. Inflation in January 2024 further eased to its lowest point since October 2020.

NEDA attributed the significant contributor to the lower inflation rate to the easing of food inflation to 3.3%, down from 5.5% in December. This was attributed to decreased prices in 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%). However, rice inflation 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) would continue to closely monitor rice and other goods’ prices. The committee aims to provide timely and appropriate policy recommendations to ensure stable and affordable commodity prices.

Given the El Niño’s persistence until May, Balisacan mentioned implementing stop-gap measures, including allowing further imports on key commodities, until supply stabilizes at consumer-friendly prices while ensuring fair returns for local producers.

President Ferdinand Marcos Jr. extended reduced tariff rates for pork, corn, and rice until the end of 2024 through Executive Order No. 50. He also reactivated the Task Force El Niño via Executive Order No. 53, tasking concerned agencies to intensify efforts to secure sufficient water, food supply, power, health, and public safety nationwide.

Balisacan noted the Department of Agriculture’s continuous monitoring of on-the-ground situations to guide the government in addressing food production concerns. The Philippines also recently signed a memorandum of understanding with Vietnam for the annual supply of at least 1.5 to 2 million metric tons of rice.

The Department of Social Welfare and Development will expand its National Food Stamp program to cover 300,000 households in 2024, assisting the most vulnerable families during the El Niño season, Balisacan said.