Finance Secretary Ralph G. Recto hailed the significant drop in inflation to 2.1 percent in February, marking the lowest rate since October 2024. He said the reduction provides vital relief to lower-income families, particularly on food prices. The bottom 30 percent income group’s inflation rate fell to 1.5 percent, further easing the financial strain on vulnerable sectors.
This improvement is largely attributed to proactive government measures, such as price control initiatives and strategic imports, including rice and pork, aimed at stabilizing supply and costs. The price of rice, in particular, saw a remarkable reversal, dropping by 4.9 percent compared to February 2024.
With core inflation also easing to 2.4 percent, the lower inflation rate opens room for potential cuts in interest rates, which would lower borrowing costs for consumers and businesses, stimulating economic activity. However, Recto cautioned that the government will remain vigilant, ensuring continued price stability through sustained efforts like the Rice Tariffication Law and interventions to control energy prices.
