President Marcos' chief economic manager emphasized the effectiveness of the government's interventions in stabilizing food prices and assured that efforts to manage risks will continue to keep prices low.
In a statement, Finance Secretary Ralph G. Recto said that they will continue to enhance current government initiatives in the coming months to further slow the rate of increase in consumer prices.
He emphasized that such actions will greatly benefit everyday Filipinos, businesses, and the broader economy.
“We will not be complacent. While we are now seeing the positive results of our measures, we are proactively monitoring potential inflationary risks to address them in a timely and targeted manner,” Recto said.
The August inflation rate of 3.3 percent aligned with the Bangko Sentral ng Pilipinas' forecast and falls below private analysts' estimates, ensuring that the year-to-date average remains within the government's target range of three percent to four percent.
The significant decline in August inflation was driven by slower price increases for food and non-alcoholic beverages, a decline in transport costs, and notably reduced rice inflation due to lower tariffs and increased imports.
Additionally, core inflation decreased to 2.6 percent in August from 2.9 percent the previous month, showing ongoing price deceleration in non-volatile items.
This reduction in both headline and core inflation justifies the BSP's decision to lower interest rates by 25 basis points in August.
Inflation also slowed down across multiple sectors, providing relief to both the National Capital Region (NCR) and other regions, including the bottom 30 percent of income households.
Meanwhile, the Department of Agriculture (DA) is intensifying its efforts to implement specific measures that will protect farmers' welfare and ensure the country's food security.
The government is extending and increasing the Rice Competitiveness Enhancement Fund (RCEF) until 2030 to help local rice production and farmers.
The DA is expanding the KADIWA ng Pangulo (KNP) program to Visayas and Mindanao with 60 new stores offering affordable agricultural products, including rice priced at PHP 29 per kilo.
They are also providing ASF vaccines for small swine farmers, improving water management in anticipation of La Niña, and addressing non-food inflation through staggered electricity rate hikes. (Derco Rosal)