Farm gate prices of palay continued to climb in February, a development that could keep inflation elevated in the months ahead given the space taken up by the rice in consumers’ basket.
Price data gathered by the Philippine Statistics Authority in the last five days of the month showed the national average farm gate price of palay at P25.21 per kilo in February, up from P18.19 in the same month last year and the P24.92 recorded in January.
Around two kilos of palay are need to produce a kilo of milled rice, which suggest a retail price of over P50 a kilo in the months ahead.
Of the 16 regions in the Philippines, palay price was highest in Ilocos Region in February at P28.41 and lowest at P22.75 in the Bicol Region.
Economic Planning Undersecretary and National Statistician Dennis Mapa said elevated rice prices due to El Nino an a lower price base last year would keep rice prices high through July.
As the national food staple, rice weighs heavily in the consumer basket. Rice price accounts for 8.87 percent in the consumer basket while it accounts for 17.87 percent of the consumption spending of the bottom 30 percent of income households.
Rice inflation for the bottom 30 percent of income households stood at 26.3 percent in February.
