THE Department of Agriculture (DA) on Thursday said government supply measures have helped keep food prices broadly stable, but warned that the El Niño climate pattern and volatile fuel prices could raise farm, transport and logistics costs in the coming months.
The DA has expanded financial assistance, input subsidies and other support for farmers and fisherfolk as it seeks to prevent higher production and fuel costs from pushing up food prices.
“We’re seeing signs that our supply interventions are working, but we can’t take our foot off the pedal. Our job is to keep food flowing, help farmers and fisherfolk absorb higher production costs, and make sure affordable rice reaches consumers,” Agriculture Secretary Francisco Tiu Laurel Jr. said, adding that the DA is also studying a possible retail price cap on rice if market conditions warrant.
“If we keep food supplies stable despite volatile fuel prices and the expected impact of El Niño on production, inflation will ease,” Laurel pointed out.
Data from the Philippine Statistics Authority showed headline inflation inched down to 6.2 percent in July from 6.4 percent in June, within the Bangko Sentral ng Pilipinas’ forecast range of 5.6 to 6.6 percent.
Food inflation was unchanged at 5.3 percent, although rice inflation accelerated to 17.1 percent, the highest since July 2024.
Month-on-month, food prices were broadly stable. Rice prices fell 0.4 percent from June, while meat prices declined 0.6 percent. These have offset increases in vegetable prices, which rose 2.4 percent, as well as that of corn, which climbed 1.9 percent, partly due to bad weather and higher transport costs.
Prices of fish, dairy products, cooking oil, and fruits were largely unchanged.
Food accounted for nearly a third of the overall increase in consumer prices in July. Cereals, particularly rice and other grain products, contributed nearly three-fourths of food inflation, followed by fish and seafood, and vegetables.
The bigger challenge now, the DA said, is how to prevent volatile oil markets, aggravated by uncertainty in the Middle East, from reversing past gains.
