THE government is intensifying its efforts to mitigate the effects of the El Niño phenomenon and help keep the inflation rate within target, according to the National Economic and Development Authority (NEDA).
NEDA gave this assurance as the Philippine Statistics Authority announced that the country’s headline inflation rate for February 2024 increased slightly to 3.4 percent from 2.8 percent in January. The higher inflation remains within the government’s target range of 2 to 4 percent.
The uptick was driven by a faster food inflation rate of 4.8 percent in February, up from 3.3 percent in January, caused by higher prices of rice and meat. However, this was tempered by slower inflation in some food items such as fish, eggs, and dairy products and lower prices recorded for vegetables and sugar.
Meanwhile, non-food inflation climbed to 2.4 percent from 2.0 percent, driven by increased inflation in housing rentals, utilities, and transport.
Rice remained the top contributor to the month’s inflation, accounting for 2.1 percentage points, while the slight acceleration in meat inflation was attributed to price increases in pork and beef.
NEDA Secretary Arsenio M. Balisacan stated that the government will continue monitoring food supply and prices and implement necessary policies and strategies to ensure affordable and adequate food for Filipino families, especially those from the most vulnerable sectors.
“As we navigate the economic landscape, it is imperative that we remain vigilant and proactive in our approach to managing inflationary pressures. While we have seen some relief from certain inflation risks, we must not become complacent. The potential impact of a strong El Niño weather pattern on food prices is a significant concern for our community. Rising transportation costs, electricity rates, and volatile oil markets are putting pressure on household finances. Our team is actively formulating robust strategies with the concerned agencies in response to these challenges. We must be agile, adaptive, and forward-thinking,” the government’s chief economic planner stated.
He added that international rice prices have started to ease, and local supply is expected to increase with the dry season harvest beginning this month through April. Balisacan also said that the Department of Agriculture (DA) is collaborating closely with the International Rice Research Institute to increase the country’s rice production.
Meanwhile, the next phase of the vaccine test for African Swine Fever (ASF) is awaiting Food and Drug Administration approval. Once the ASF vaccine is proven efficacious, the government will roll out a vaccination campaign to help ensure adequate pork supply in the country.
