On Wednesday, the Philippine Statistics Authority (PSA) credited the Department of Agriculture (DA) for its efforts in stabilizing food prices, particularly rice, which played a key role in the unexpected deceleration of February’s inflation rate. The rate fell below both the central bank and financial market forecasts.
Economic Planning Assistant Secretary and Deputy National Statistician Divina Gracia del Prado highlighted the importance of the maximum suggested retail price (MSRP) on imported rice in easing the prices of the staple food, a major component of the consumer basket. “We saw a significant impact on retail prices from the MSRP on imported rice,” said del Prado.
She also emphasized the importance of the food security emergency measures, which involve releasing rice buffer stocks from the National Food Authority (NFA) to local government units (LGUs) and other government agencies at reduced prices. In addition, the Rice-for-All program under the Kadiwa ng Pangulo has helped cushion rice prices. Del Prado suggested that applying a similar MSRP policy to pork could have a comparable effect on meat prices and, consequently, on overall inflation.
For every P100 spent by the average Filipino consumer, about P9 goes toward rice, with lower-income families spending up to P18 on the staple.
Agriculture Secretary Francisco P. Tiu Laurel Jr. affirmed that the slower inflation rate in February is a testament to the DA’s strategy to systematically stabilize the supply and prices of agricultural products. “This strategy minimizes disruptions to the industry by engaging with stakeholders, ensuring that food prices remain more reasonable,” he said.
Laurel also added that the DA will continue collaborating with stakeholders in the agricultural sector as they refine their approach to ensuring food security in the country.
On Thursday, Agriculture Secretary Laurel is scheduled to meet with players in the pork industry, including traders and retailers, to discuss the potential implementation of an MSRP on pork to help temper market prices.
During a news conference, Deputy National Statistician del Prado discussed how an MSRP on pork could impact inflation. She noted that such a policy could yield results similar to the MSRP on rice. “If implemented—and assuming all other factors remain constant—it could potentially slow down inflation on pork, possibly even resulting in negative inflation,” del Prado stated.
