Food supply cushions impact of fuel hikes

Strong domestic supply has kept food prices largely steady despite rising fuel costs, according to the Department of Agriculture (DA), easing concerns over immediate spikes in household expenses.

Data from the agency show that while logistics costs have increased, most food items have not followed suit. Only select products, such as imported rice and some meats, recorded price upticks after the 28 February US-Israel airstrike on Iran, which contributed to higher global oil prices.

In contrast, alternative protein sources including chicken, eggs, fish, and vegetables have either maintained stable prices or declined as of mid-April, reflecting sufficient supply in local markets.

A key factor has been improved fish production following the lifting of the fishing ban on 31 January. Prices of staple fish dropped significantly, with galunggong falling to about P200 per kilo from as high as P330, while tamban eased to P130 from P140.

The government is also weighing further intervention to manage rice prices. Ferdinand Marcos Jr. earlier said an executive order imposing a P50 per kilo cap on imported rice is under consideration, as market prices hover around P60.

Officials said the current trend highlights how adequate supply can offset cost pressures from fuel, though risks remain if oil prices continue to rise.

“The DA Bantay Presyo Supply and Monitoring Team is on top of the situation, closely tracking both supply and prices of basis necessities and prime commodities across markets nationwide,” said Assistant Secretary Genevieve Velicaria-Guevarra.

“We continue to monitor key agri-fishery products, including rice, cooking oil, sugar, pork, beef, chicken, tilapia, bangus, eggs, and vegetables. Based on our latest data, prevailing retail prices remain generally stable and are still fair and justifiable relative to farmgate prices, despite rising fuel costs,” she added.

Inflation, however, has begun to pick up, reaching 4.1 percent in March from 2.4 percent in February, indicating that broader price pressures are still building even as food costs remain contained for now.