The cost of rice shot up by 19.6 percent in December last year, marking its highest increase in over 14 years, the Philippine Statistics Authority (PSA) reported.

This reading, according to the statistics agency, was also the highest in 2023 since rice inflation peaked in September due to the implementation of a ceiling on rice prices. It is also higher than the 15.8 percent uptrend in November that year.

Rice had a significant contribution of 1.7 percent to the headline inflation during the month of 3.9 percent, which was the lowest on record since February 2022.

The fast increase in rice inflation was experienced heavily in areas outside the National Capital Region (NCR) which swelled to 20.4 percent, according to National Statistician Claire Dennis M. Mapa.

Meanwhile, rice inflation in NCR had a reading of 13.6 percent in December 2023.

Last year, the government extended the Most Favored Nation (MFN) reduced tariff rates for key agricultural commodities such as rice to ensure sufficient supply and prevent spikes in its prices.

This is also to counter the possible impact of the persisting El Niño which is expected to last until May and hit 65 provinces this year, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said.

“Amid an uptrend in international rice prices and the expected negative impact of the El Niño phenomenon, the Interagency Committee on Inflation and Market Outlook will closely monitor the situation and propose further temporary tariff adjustments if necessary,” Balisacan said in a statement.

“We will also push for trade facilitation measures to reduce other non-tariff barriers. While our medium-term objective to boost agricultural productivity remains, it is important to augment domestic supply to ease inflationary pressures on consumers, particularly those in low-income households,” he added.

The NEDA chief also called on the quick implementation of the El Niño National Action Plan (NAP), which will provide guidelines for government agencies to mitigate the immediate effects of the El Niño phenomenon.

“We must remain vigilant in monitoring the prices of our commodities and continue to implement strategies to address short-term and long-term inflation-related challenges,” he further stated.