The Philippines achieved a stable inflation rate of 2.9 percent in January 2025, within the government's target range, driven by food inflation while efforts mitigate its impact and address the lingering effects of last year's typhoons continue.
The Philippines achieved a stable inflation rate of 2.9 percent in January 2025, aligning with the government's target range of 2 percent to 4 percent and mirroring the December 2024 figure. This positive development, according to the Philippine Statistics Authority (PSA), reflects the government's commitment to price stability, a key objective outlined in the Philippine Development Plan (PDP) 2023-2028. While food inflation remains the primary driver of overall inflation, contributing 1.
5 percentage points to the national growth rate, it was partially offset by lower inflation rates in housing, water, electricity, gas, and fuels, as well as restaurants and accommodation services, and clothing and footwear. Notably, rice experienced a year-on-year deflation of -2.3 percent.To further address food security concerns, the Department of Agriculture (DA), with the support of the National Price Coordinating Council, declared a food security emergency. This declaration allows for the release and sale of rice buffer stocks from the National Food Authority at discounted prices in select Kadiwa ng Pangulo sites. NEDA Secretary Arsenio Balisacan emphasized that reducing food inflation remains a top priority for the government. Despite the positive inflation trends, the lingering impact of last year's typhoons continues to pose challenges. Food inflation at the national level rose to 4.0 percent in January 2025, up from 3.5 percent in December 2024, primarily driven by the surge in prices of vegetables, tubers, plantains, cooking bananas, and pulses.To mitigate the effects of La Niña conditions, the DA is implementing various interventions, including the construction and rehabilitation of water management systems, the provision of agricultural inputs such as submergence-tolerant and early maturing seed varieties, and the promotion of diversified farming systems. The agency is also intensifying its vaccination campaign against African Swine Fever and collaborating with the Food and Drug Administration to accelerate the approval of the Avian Influenza vaccine. Meanwhile, the Maharlika Investment Corp. (MIC) and the Department of Energy anticipate that the government's investment in the transmission segment of the power industry will contribute to lower electricity costs for Filipinos through reduced transmission charges. Secretary Balisacan underscored the need for sustained vigilance and proactive measures to address potential challenges, both anticipated and unforeseen. He highlighted the importance of building resilient agri-food systems to ensure low and stable prices for all Filipinos.
INFLATION ECONOMY PHILIPPINES FOOD SECURITY LA NIÑA TYPHOONS AGRICULTURE
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