Inflation in the Philippines held steady at 2.9 percent in January 2025, within the government’s target range of 2 percent to 4 percent, on lower rice prices, the Philippine Statistics Authority (PSA) said Wednesday.
The PSA said the rate matched the inflation rate recorded in December 2024. It was also within the Bangko Sentral ng Pilipinas’ forecast range of 2.5 percent to 3.3 percent.
The decline in rice prices in January highlights the success of the Marcos administration’s efforts to stabilize food inflation, Department of Agriculture Secretary Francisco Tiu Laurel Jr. said.
Rice inflation in January was recorded at -2.3 percent year-on-year and -0.9 percent compared to December. The deflation marked the first decrease in rice prices since December 2021, when prices dropped 0.1 percent.
“This is great news. It clearly demonstrates that President Bongbong Marcos’ measures, particularly the sharp reduction in rice tariffs last year, are paying off,” said Tiu Laurel.
“The latest inflation outturn is consistent with the BSP’s assessment that inflation will remain anchored to the target range over the policy horizon. The rice tariff reduction and negative base effects are expected to support disinflation,” the BSP said in a statement.
“The balance of risks to the inflation outlook continues to lean to the upside due largely to potential upward adjustments in transport fares and electricity rates,” it said.
The BSP said the impact of lower import tariffs on rice remained the main downside risk to inflation.
“Domestic demand is likely to remain firm but subdued. Private domestic spending is expected to be supported by easing inflation and improving labor market conditions. However, uncertainty in the external environment could temper economic activity and market sentiment,” it said.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said that reducing food inflation is one of the government’s most pressing priorities. “Due to the lingering effects of last year’s consecutive typhoons, food inflation at the national level rose to 4.0 percent in January 2025 from 3.5 percent in December 2024. The acceleration was primarily driven by the faster inflation rate of vegetables, tubers, plantains, cooking bananas, and pulses, which rose to 21.1 percent from 14.2 percent previously,” he said.
The latest inflation report highlights that while food inflation remained the primary driver of overall inflation, contributing 1.5 percentage points to the total growth rate, it was offset by lower inflation rates in housing, water, electricity, gas and fuels (2.2 percent from 2.9 percent), restaurants and accommodation services (3.2 percent from 3.8 percent), and clothing and footwear (2.3 percent from 2.4 percent).
The Department of Agriculture (DA), with the endorsement of the National Price Coordinating Council, declared a food security emergency to allow the release and sale of rice buffer stocks from the National Food Authority at lower prices in select Kadiwa ng Pangulo sites.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration issued an early warning to agencies to remain vigilant about the arrival of typhoons in the first half of the year, noting that four to ten tropical cyclones are expected to develop from February to July 2025.
The DA said it is implementing various interventions to mitigate the impact of La Niña conditions, including the construction and rehabilitation of water management systems, and the provision of agricultural inputs such as submergence-tolerant and early maturing seed varieties, animals, and adoption of diversified farming systems.
The agency has been ramping up its ongoing vaccination campaign against African Swine Fever and working closely with the Food and Drug Administration to expedite the approval of the Avian Influenza vaccine. Efforts are underway to secure P300 million to fund the vaccine testing, which is expected to begin in March 2025.
Meanwhile, Maharlika Investment Corp. (MIC) and Department of Energy expect that the government’s investment in the transmission segment of the power industry will help reduce electricity costs for Filipinos through lower transmission charges.
“President Marcos has emphasized that there should be no room for complacency as we work toward our targets this year and the medium-term,” Balisacan said.
“We remain vigilant and proactive in anticipating and addressing future developments, whether upside or downside risks, unforeseen or otherwise. Resiliency of our agri-food systems will be one of our most important goals to ensure low and stable prices for all Filipinos,” he said.
