The Remarkable Deceleration: PH Inflation Touches Lowest Since October 2020

As the early dawn breaks on February 6, 2024, the National Economic and Development Authority (NEDA) imparts a hopeful message, a silver lining in the economic cloud. It assures the nation that the government remains vigilant, closely monitoring the food supply and prices across the country. This vigilance is crucial as we foresee the El Niño phenomenon extending its reach across more regions.

The Philippine Statistics Authority reports an encouraging statistic - the country's inflation rate has significantly decelerated to 2.8 percent in January 2024, a substantial drop from 3.9 percent in December 2023 and a whopping 8.7 percent in the same period last year. This is a record low since the 2.3 percent inflation rate observed in October 2020.

The biggest contributor to this inflation slowdown is the easing of food inflation. It dropped to 3.3 percent from the previous month's 5.5 percent, thanks to a decrease in the prices of corn, oils and fats, meat, and sugar. However, rice inflation picked up pace, accelerating to 22.6 percent in January from 19.6 percent in the prior month.

NEDA Secretary Arsenio M. Balisacan emphasizes the role of the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) in maintaining stability. The IAC-IMO is tasked with closely monitoring the prices of rice and other goods. By doing so, it provides the President and the Cabinet with timely policy recommendations, ensuring stable and affordable commodity prices.

With the El Niño projected to linger until May, necessary stop-gap measures are being introduced. These include permitting further imports on key commodities until the local supply stabilizes. The aim is to ensure affordability for consumers while providing remunerative prices to local producers.

In light of the situation, President Ferdinand R. Marcos Jr. has issued Executive Order No. 50, extending the reduced tariff rates on pork, corn, and rice until the end of 2024. Additionally, he has reactivated the Task Force El Niño through Executive Order No. 53.

The President has also directed concerned agencies to implement the National Adaptation Plan (NAP) 2023-2050. The goal of this plan is to increase resilience of communities against extreme weather disturbances.

Balisacan also informs us that the Department of Agriculture will continuously monitor on-the-ground situations. The recent signing of a Memorandum of Understanding with Vietnam for the continuous supply of at least 1.5 to 2 million metric tons of rice annually is a testament of this commitment.

The Department of Social Welfare and Development will expand its National Food Stamp program to cover 300,000 households in 2024. This measure will aid the government in assisting the most vulnerable families during the El Niño season.

In these challenging times, the government's proactive measures and the resilience of the Filipino people are the driving forces in overcoming economic hurdles. The remarkable deceleration of inflation rate to its lowest since October 2020 is a testament to this collective resolve.