NEDA chief expects food prices to fall, easing inflation

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan expects food prices to decrease in the coming months, bringing overall inflation within the government's 2 to 4 percent target for 2024.

Headline inflation eased slightly to 3.7 percent in June from 3.9 percent in May, while food inflation rose to 6.5 percent from 6.1 percent previously.

Balisacan noted that the end of El Niño is positive and hopes La Niña will not cause severe flooding, predicting a continued downward trend in overall inflation.

In a Palace press briefing Tuesday, Balisacan expressed optimism that better days are ahead for food prices, attributing recent high food inflation to factors like extreme drought due to El Niño, unsteady global supply chains, and African swine fever.

The NEDA chief also cited the proposed increase in the 2025 budget of the Department of Agriculture as a key factor in stabilizing food prices.