JANUARY 5, 2024 – As the country’s inflation rate settled to its lowest level in 2023 last December, the National Economic and Development Authority (NEDA) assured the public that the government is continuously monitoring prices and inflation risks and implementing measures to protect the purchasing power of Filipino households.

The Philippine Statistics Authority reported today that inflation for December 2023 further slowed down to 3.9 percent from 4.1 percent in November 2023, bringing the full-year average inflation rate to 6.0 percent.

Inflation for most commodity groups either slowed down or retained their previous rates during the month.

However, rice inflation rose to 19.6 percent during the month from 15.8 percent in November 2023. It was also the most significant contributor to December 2023’s inflation with 1.7 percentage points (ppt), followed by food and beverages services and housing rentals with 0.5 ppt each.

Thus, NEDA Secretary Arsenio M. Balisacan emphasized the importance of Executive Order No. 50, which extended the Most Favored Nation (MFN) reduced tariff rates for key agricultural commodities like pork, corn, and rice to ensure sufficient food supply for Filipinos and prevent spikes in prices of these commodities.

“Amid an uptrend in international rice prices and the expected negative impact of the El Niño phenomenon, the Interagency Committee on Inflation and Market Outlook will closely monitor the situation and propose further temporary tariff adjustments if necessary. We will also push for trade facilitation measures to reduce other non-tariff barriers. While our medium-term objective to boost agricultural productivity remains, it is important to augment domestic supply to ease inflationary pressures on consumers, particularly those in low-income households,” he said.

Balisacan likewise noted that the El Niño phenomenon, which the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) expects to continue until May 2024, has added to the threat of higher inflation.

He underscored the need to hasten the full implementation of the El Niño National Action Plan (NAP), which seeks to increase the resilience of communities against El Niño and guide government agencies in mitigating its immediate effects.

“We must remain vigilant in monitoring the prices of our commodities and continue to implement strategies to address short-term and long-term inflation-related challenges,” Balisacan said.

These strategies, he added, include implementing timely deployment of trade policy tools along with sustained investments in irrigation, flood control, supply chain logistics, and climate change adaptation.

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