Manila – The Philippine Statistics Authority (PSA) recently released a report showing a slow growth in rice inflation between April and May 2024, along with a slight decrease in retail prices. National statistician Claire Mapa presented this information during a press conference on Wednesday, noting a decrease in overall rice inflation from 23.9% in April to 23% in May.
This decline is significant compared to the 22.6% inflation rate recorded at the beginning of the year, which was the highest since 2009 at 22.9%. Mapa attributed this drop in inflation to a decrease in the average world price of rice, particularly in countries like Thailand and Vietnam, which then impacts retail prices in the Philippines.
According to the Department of Agriculture (DA) price watch, well-milled rice was priced at P48 to P55 per kilo in public markets at the end of May, while regular milled rice was around P45 to P52 per kilo. These prices remained relatively stable throughout the month.
Mapa also highlighted possible changes in prices due to a recent tariff reduction proposed by the National Economic Development Authority (NEDA). NEDA Secretary Arsenio Balisacan explained that reducing tariff rates from 35% to 15% would improve accessibility and affordability of commodities, particularly rice, and help alleviate price pressures. This change could also have a positive effect on inflation moving forward.
Overall, the report suggests that the recent trends in rice inflation and retail prices are influenced by both global and local factors, and future price movements may depend on various economic policies and market conditions.
