Manila: The Department of Agriculture (DA) has expressed optimism that rice price inflation in the country will drop to single digits in the coming months, following recent reductions in inflation rates for food products.
According to Philippines News Agency, the department is hopeful for a return to single-digit inflation for rice prices, similar to levels seen after the implementation of the Rice Tariffication Law (RTL). De Mesa noted, “We’re hoping na bababa. Of course, single digit, maganda yan. Makita natin noong panahon ng after RTL, after a year, ang laki ng naging stability ng inflation because of rice.”
The Philippine Statistics Authority (PSA) recently reported that rice inflation fell to 14.7% in August from 20.9% in July, contributing to an overall reduction in food inflation from 6.7% to 4.2%. De Mesa explained that rice accounts for a significant portion of food inflation, and further reductions are expected in the coming months.
DA Secretary Francisco Tiu Laurel Jr. previously stated that the public could expect lower retail rice prices by October, as imported rice with reduced tariffs starts arriving in local markets. Executive Order No. 62 had lowered rice import tariffs from 35% to 15%, contributing to this expected price decrease.
The DA reported that over 2.8 million metric tons of rice have been imported since January, including 296,350 metric tons that arrived in August alone. De Mesa highlighted that the price of well-milled rice in some markets has dropped to as low as PHP42 per kilogram, with a commonly monitored price of PHP45/kg.
As of Thursday, prices of imported well-milled rice in Metro Manila ranged between PHP47/kg and PHP55/kg, while local well-milled rice remained within the same price range. Regular-milled rice prices ranged from PHP43/kg to PHP50/kg.