MONITORING of food prices and supply will be intensified after an increase in the cost of goods was cited as the main driver of inflation in February, Agriculture Secretary Francisco Tiu Laurel Jr. said on Friday.
The government is also preparing contingency measures in response to the situation.
“We are now taking steps to secure supply, so food and farm inputs are sufficient in anticipation of price shocks that may follow the current situation in the Middle East,” Tiu Laurel said.
On Thursday, the Philippine Statistics Authority (PSA) reported that inflation reached a 13-month high of 2.4 percent in February due to a slower decline in rice prices and higher costs of vegetables and fish.
Food inflation also rose 1.6 percent in February from 0.7 percent the previous month, although it was lower than the 2.6 percent a year earlier. It also accounted for 0.6 percentage point of the overall inflation for the month.
“This highlights the [food] sector’s strong influence on consumer prices,” the Department of Agriculture (DA) said, while stressing the need to maintain a stable supply, especially in light of recent geopolitical tensions.
Inflation for the bottom 30-percent income households was 2.5 percent in February, up from 1.6 percent in January, likewise due to higher food prices. The February figure was also higher than the 1.5 percent in the same month last year.
Rice price movements played a key role in the February inflation results. While its retail price continued to decline, it was slower in February at 3.4 percent compared to 8.5 percent the previous month. The base effect contributed to higher inflation results, the DA said.
Aside from rice, the PSA reported faster price increases in other commodities including corn, flour, bread and other cereals, fish, seafood, vegetables, fruits and milk.
