DA attributes Feb's 2.1% inflation drop to rice deflation and MSRP

Department of Agriculture (DA) Secretary Francisco Tiu Laurel attributed February's lower inflation rate of 2.1 percent to the agency's efforts in stabilizing agricultural product supply and prices, noting that deflation in rice prices in January reflects the effectiveness of measures implemented by the Marcos administration.

The Philippine Statistics Authority reported a significant drop from January's inflation rate of 2.9 percent, largely due to slower price increases in food and beverages, with rice experiencing its first deflation since December 2021 at minus 2.3 percent year-on-year.

Laurel highlighted the DA's implementation of the maximum suggested retail price (MSRP) on imported rice and the declaration of a food security emergency on rice as key factors in stabilizing prices, with MSRP expected to drop to PHP45 per kilogram by the end of March from its current PHP49/kg.

Deputy National Statistician Divina Gracia del Prado cited the Kadiwa ng Pangulo program, which offers rice at reduced prices, as another important factor in lowering inflation, with DA spokesperson Arnel de Mesa noting that prices have been dropping since December 2024.

The DA plans to meet with pork industry players this Thursday to discuss implementing a similar MSRP scheme on pork, aiming to potentially slow down meat price inflation.