House to help arrest inflation

The House of Representatives has committed to continue assisting the Marcos administration’s efforts to, among other things, further reduce the price of rice, which has been the primary driver of headline inflation throughout the years.

In a statement on Friday, Speaker Martin Romualdez said the chamber will work closer with President Ferdinand Marcos Jr. to continue to curb the high prices of commodities and maintain the slow inflation rate of 1.9 percent recorded in September.

Last month’s inflation rate was drastically lower than the 3.3 percent recorded in August and was the lowest in over four years when the inflation rate plunged to 1.6 percent in May 2020.

The government attributed the decline to a decrease in the prices of particular goods, including vegetables, fish, and rice, among others.

National Statistician Claire Dennis Mapa said the cost of rice, previously the top source of inflation, has been dropping since July.

A report by the Philippine Statistics Authority showed that rice inflation in September plummeted to 5.7 percent from 14.7 percent in August.

It is the first time this year that it dropped to single digits and is also the lowest since the 4.2 percent recorded in July last year.

Back in March, rice inflation soared to 24.4 percent.

According to Romualdez, “the intervention measures taken by the government under the leadership of President Marcos Jr. are now yielding positive results.”

These include Marcos’ decision to drastically cut the rice import tariff from 35 percent to 15 percent and to sell rice directly to the public through Kadiwa stores.

“These twin steps have significantly reduced the retail price of rice, from above P50-P60 per kilo to P40-P42 per kilo, or by at least 20 percent,” the House chief stated.

Be vigilant

While the ease in inflation last month was a win, Albay Rep. Joey Salceda, a seasoned economist and the chair of the House Committee on Ways and Means, warned that the government should remain vigilant about rice inflation, which the poor tend to be most sensitive to.

According to Salceda, there is still much room to improve the 5.7 percent rice inflation figure, especially with the start of the harvest season this October.

“We should also watch out for corn prices, at 6.9 percent inflation, given its key importance as an input to meat, poultry, and fish prices,” the lawmaker said.

The House of Representatives has established a five-committee panel, including Salceda’s, to address food security and lower food prices.

The quint committee will also take necessary action to reduce agricultural production losses from as much as 30 percent to 15 percent and bring livestock and poultry prices in the country to regionally competitive levels.

“We hope to make real and structural improvements to our food systems, similar to the numerous accomplishments of the House Joint Hearings on Senior Citizens and PWD benefits earlier this year,” Salceda said.