A sharp decline in rice, poultry, and fish prices during the second half of August signals a favorable trend toward continued easing of inflation.
Inflation rate in July decelerated to a fresh 6-year-low 0.9 percent.
Data from the Philippine Statistics Authority showed that the national average price of regular milled rice fell by 20 percent to P40.35 per kilo compared with P50.67 in August 2024. Rice carries significant weight in the consumer price basket—about 9 percent for the average household and double that for the poorest 30 percent.
Other key protein sources also saw notable price declines. Chicken prices dropped 2.6 percent to P199.38 per kilo, tilapia fell 16 percent to P140.00, and bangus (milkfish) slipped 14 percent to P175.00.
Food accounts for almost 40 percent of the country’s consumer price index, making it a primary driver of inflation.
While official August inflation data is scheduled for release on September 5, the Bangko Sentral ng Pilipinas (BSP) has already moved ahead with a 25-basis-point rate cut, signaling confidence that inflation will stay below its 2 to 4 percent target for the year.
“The policy rate itself is at our Goldilocks rate—neither too high nor too low,” BSP Governor Eli Semolina said during a press briefing. “I would characterize this as still dovish, though slightly less so in terms of forward guidance.”
Still, elevated prices of pork liempo, galunggong (round scad), red onion, and garlic could limit further food price relief.
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