The Philippine Statistics Authority (PSA) reported that the government’s decision to lower rice import tariffs is starting to affect consumer prices.
In a briefing, National Statistician and PSA Undersecretary Claire Dennis S. Mapa said the tariff reduction significantly contributed to the slowdown in food inflation, which fell to 4.2 percent in August from 6.7 percent the previous month.
This August figure is also an improvement compared to 8.2 percent in the same month last year.
Mapa attributed this decline primarily to the substantial drop in rice inflation, which slowed to 14.7 percent in August from 20.9 percent in July.
The PSA further noted that the rice inflation during yearend 2023 was already at an alarming high of 19.6 percent.
Mapa said that government interventions, particularly the reduced tariff rates, have favorably affected recent PSA data.
“It prevented the hike in rice prices, and it’s now slowing down,” he said.
Mapa also hoped that commodity prices, specifically rice prices, would continue to go down this month and next while stating that the PSA would continue to monitor any possible changes brought by the reduction.
The tariff for imported rice has been cut from 35 percent to 15 percent, as per Executive Order 62, which President Marcos signed last June.
The retail price for the imported regular milled rice according to the Department of Agriculture (DA) is at around P47 to P50 per kilo, while the well-milled rice is at P47 to P55 per kilo.
Imported special rice per kilo is at P55 to P65.
Meanwhile, there was a year-on-year inflation drop for vegetables, tubers, plantains, cooking bananas as well as pulses from 6.1 percent to 4.3 percent.