Rice cap imposition eased food inflation—NEDA exec

An official of the National Economic and Development Authority on Saturday said the Marcos administration's imposition of the price cap on rice last September helped ease the food inflation in the country.

In a news forum on Saturday, NEDA Undersecretary Rosemarie Edillon cited the improving inflation rate, which further eased to 4.1 percent in November from 4.9 percent in October.

Edillon added that food inflation at the national level decelerated further to 5.8 percent in November 2023 from 7.1 percent the previous month.

"Magandang balita ito kasi, especially iyong mga food item na binabantayan natin — kunwari iyong pork meat, iyong sugar, iyong mga vegetables — bumaba po iyong presyo nitong mga ito (This is good news, especially with regard to the food items that we are monitoring – the prices of pork meat, sugar, and vegetable went down)," she said.

Edillon attributed the slowdown in importation to tightening supply in the world market which caused the increasing cost of rice.

"Iyong sa ibang mga bansa, nag-i-expect kasi sila ng impact ng El Niño. Pero ang tingin naman namin, dahil we think that they have been prepared for this so mukhang it will correct actually (Other countries are bracing for the impact of El Niño. But we think because they're already prepared for it, it will be corrected eventually)," she said.

Edillon said the price cap in September contributed to the lower inflation rate.

"Itong mga presyo na ito was actually as of November at alam naman natin na towards the end of September at saka October, nagkaroon na rin ng anihan. So, yes, naghalo-halo na po itong mga factor na ito (These prices were actually as of November and we know that it was harvest season towards the end of September and October. So, yes, these are combined factors)," she added.

Edillon further pointed out that the suspension of pass-through fees by local government units also helped lower the prices of basic goods.

The President's decision to adjust the buying price for fresh 'palay' (wheats) has benefitted many farmers, she added, maintaining that "the P20 a kilo of rice remains a goal under the present condition."

"Tumaas, mga P23, P25 – mayroon pa ngang P25 eh. Palay po iyon ha, palay, hindi ba iyon bigas. So iyon, malaki ang naging ganasya ng mga farmers natin," she said.

Edillon suggested that focusing on addressing "demand management" could also lower rice prices on the part of consumers, which includes food wastage, particularly on rice.