P45B El Niño fund deployed to curb inflation

The government is strengthening measures to stabilize food supplies and contain prices after food inflation accelerated in September amid weather disruptions, higher logistics expenses and rising fuel costs.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said P45 billion has been set aside for the government’s El Niño response, with P6.2 billion already released to support efforts aimed at protecting food production and keeping prices stable.

“We are setting aside P45 billion for our El Niño response, with P6.2 billion already released, because we need to make sure that food supply remains stable and prices do not spiral whenever climate challenges hit our farmers and fisherfolk,” Tiu Laurel said.

PAGASA is projecting a Super El Niño from later this year through the first half of 2027, with the most severe dry conditions expected from November to April. The weather event could disrupt agriculture, fisheries and livestock production, putting additional pressure on food supplies and prices.

Food inflation climbed to 6.8 percent in September from 4.6 percent in August and 0.8 percent a year earlier, according to the Philippine Statistics Authority.

Vegetables, tubers, plantains, cooking bananas and pulses recorded a 10.7-percent inflation rate in September, reversing a 3.4-percent decline in August.

Rice inflation also accelerated to 20.3 percent from 19.4 percent, while fish and seafood prices rose 7.4 percent from 6.6 percent. Fruit and nut inflation increased to 8.7 percent from 5.8 percent.

Cereals and cereal products, including rice, accounted for 64.5 percent of food inflation, contributing 4.4 percentage points. Fish and seafood added 1.3 percentage points, while vegetables and related products contributed one percentage point.

Tiu Laurel said the government is prepared to use measures such as importation when necessary while providing assistance to farmers, fisherfolk and agricultural truckers affected by higher production and transportation costs.

Food accounted for 34.4 percent, or 2.5 percentage points, of September’s overall inflation, making stable food supplies a key part of efforts to ease broader price pressures.