Rice inflation slows down to 14.7% in August

The inflation rate for rice slowed down in August due to the combined base effects and impact of reduced tariff rates for the imported grain during the period, data released by the Philippines Statistics Authority (PSA) on Thursday showed.

At a press conference, PSA chief and National Statistician Claire Dennis Mapa said rice inflation clocked in at 14.7% last month from 20.9% in July.

This is the slowest inflation print for the Filipino food staple since October 2023, when it hit 13.2%, according to Mapa.

The slowdown in rice inflation in August was consistent with the PSA’s expectation that it will begin easing towards the second half of 2024 due to base effects, particularly when it began its uptrend in August 2023, as well as the impact of lower rice import tariff which took effect early July. 

Executive Order No. 62, which slashed the tariff rates for imported rice to 15% from 35%, took effect early last month.

To recall, the PSA earlier said the reduction in tariffs for the imported grain staple could reduce the retail price per kilo of rice by P6 to P7.

To illustrate the slower rice inflation seen last month, Mapa bared the month-on-month national average prices of regular, well-milled, and special rice varieties during the period.

In particular, the following are the average prices of rice at the national level in August compared to the prior month as well as same month last year:

• Regular milled - P50.66 per kilo from P50.90 per kilo in July and P43.29 per kilo in August 2023
• Well-milled - P55.56 per kilo from, P55.85 per kilo in July and P47.65 per kilo in August 2023
• Special - P64.08 per kilo from P64.42 per kilo in July and P56.24 per kilo in August 2023

With the lower tariff on imported rice seen to take effect, Mapa said, “We hope to see bigger drops in the coming months.”

“This month of September, it will further go down to single-digit,” the PSA chief said.

Rice inflation began trailing its double-digit acceleration streak in September 2023, when it stood at 17.9%.

To ease consumers’ burden due to higher rice prices, the Department of Agriculture (DA) launched the Rice-for-All program on August 1.

Under the program, the general public can purchase rice at P45 per kilo at select Kadiwa outlets.

The program is a follow-up on the P29 Rice Program, wherein vulnerable sectors can purchase subsidized rice at P29 a kilo at several Kadiwa outlets. —VAL, GMA Integrated News