Rice inflation hits 15-year high in February

The cost of rice, a food staple among Filipinos, continued to accelerate as the inflation rate for the commodity rose to its fastest level in 15 years in February, the Philippine Statistics Authority (PSA) reported on Tuesday.

Rice inflation quickened to 23.7% last month from 22.6% in January.

This is the fastest inflation print for the food staple since February 2009, when rice inflation was recorded at 24.6%.

National Statistician and PSA chief Claire Dennis Mapa said that “the price of rice in the world market continues to increase.”

“We also have a tight [local] supply,” Mapa said.

Moreover, the PSA chief said the faster rice inflation was due to the low base effect seen in January to July 2023, when inflation for the grain was relatively low.

“Mababa kasi ang rice inflation last year from January to July (Rice inflation from January to July last year was low). Mababa ‘yung pinanggalingan niya (So it came from a low base),” he said.

The PSA chief said the Statistics agency monitored that the movements in the average prices of three main rice classes —regular milled, well-milled, and special— saw double-digit year-on-year increases.

For regular milled rice, Mapa said the average price was at P50.44 per kilogram in February 2024, up 27.2% from P39.65 per kilogram in February 2023.

The average price of well-milled rice saw a 27.1% increment to P55.93 per kilogram last month from P43.99 per kilogram year-on-year.

Special rice, on the other hand, saw its average price increase by 19.5% to P64.42 per kilogram from P53.89 per kilogram in the same month last year.

“Assuming there’ll be no reduction in price and the movement will continue, we should be expecting high rice inflation until July or August this year,” Mapa said.

National Economic and Development Authority Secretary Arsenio Balisacan, meanwhile, said 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.—AOL, GMA Integrated News