Albay 2nd district Rep. Joey Salceda (Facebook)

Albay 2nd district Rep Joey Salceda is pushing the economic managers of the Marcos administration to keep corn prices in check, even as the inflation rate for August eased to 3.3 percent.

Salceda, an economist, said managing the prices of corn would help prevent an “upward spiral” in food prices.

“Corn remains a very strong sticking point because the transmission to meat prices, especially poultry, can be very quick,” he said in a statement.

On Thursday, Sep. 5, the Philippine Statistics Authority (PSA) announced that the August inflation rate slowed down from the slight increase in July, which settled at 4.4 percent.

The PSA said the slow-down in prices of food and non-alcoholic beverages and transport were key for the drop in inflation.

Salceda said this development is a “much needed breathing room” for consumers.

“The inflation rate was largely driven by rice and corn prices, which were higher year-on-year, due to base effects. But if you look at month-on-month figures, rice and corn are actually cheaper now than they were last month. So, the trend is actually even better for consumers in that perspective,” he said.

The lawmaker said the month-on-month inflation for meat has been negative so far, while the expected impact of feed prices has been “muted”.

Even sugar prices, which sometimes soar to high levels, are currently cheaper both on a month-on-month and year-on-year basis, he said.

“We need these numbers moving forward for consumer confidence, especially as the biggest consumer spending event of the year—the Christmas season—dawns,” said Salceda.

“This is often the only chance many firms get to ramp up sales, so it will be very crucial to see whether consumers get some extra leg room for discretionary spending due to lower consumer prices,” he continued.

Salceda, who chairs the House Committee on Ways and Means, says he is also keen on keeping track of movements in fuel prices.

He noted that this was “something to watch out for” since prices of fuel have moved considerably on a month-on-month and year-on-year basis. 

“All in all, these results are positive. I hope President Marcos and his agriculture and food security team, led by the Secretary of Agriculture, will remain hell-bent on ensuring that the price of rice and corn will continue to decline in the coming months—especially after harvest season next month for rice,” added Salceda.