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BOOSTING the country’s agricultural supply chain could help keep commodity prices stable across the country in the coming months, according to the National Authority for Economy and Development (Neda).
On Friday, the Philippine Statistics Authority (PSA) said inflation slowed to 2.4 percent in August from 2.7 percent in July. However, this was still higher than the inflation rate of 1.7 percent recorded in August 2019.
In a statement, Acting Secretary for Socio-Economic Planning Karl Kendrick T. Chua said that improving supply chain efficiency in agriculture will ensure low and stable inflation in the country amid the ongoing Covid-19 pandemic. and the impending typhoons.
“Investments in cold rooms and innovations in food packaging and processing must also be increased, along with the boost in agricultural production, both in rural and urban areas, through the government’s Plant, Plant, Plant program,” he said. Chua.
Chua also underlined the need to effectively manage the supply and allocation of agricultural products to ensure sufficient reserve stocks, avoid waste and spoilage, and minimize losses to farmers. This includes facilitating the delivery of vegetables and other agricultural products to Metro Manila and other regions.
To mitigate potential losses and ensure a rapid response to potential disaster-prone areas, he also highlighted the need for preventative preparations on production support, crop insurance and other recovery programs, as La Niña is anticipated to hit the end of September or October.
With the latest PSA report, year-to-date inflation is 2.5 percent. Food inflation fell to 1.7 percent from 2.5 percent last month as rice prices continued to decline.
Neda attributed this lower inflation to the unhindered movement of food and other essential staples across the country, as well as the benefits of the rice tariffication law, which guarantees ample supply.
“As we continually implement different levels of community quarantines and localized closures across the country, we need the government and the private sector to take advantage of local agricultural products and maximize use,” Chua said.
Poorer Filipinos
The data showed that inflation for households with the lowest 30 percent income nationwide slowed further to 2.7 percent in August 2020.
This brings year-to-date inflation for this consumer income group to 2.7 percent. In July 2020, inflation for households with the lowest 30 percent income was observed at 2.9 percent, and in the same month of the previous year, 1.7 percent.
The slower annual rate in the heavily weighted food and non-alcoholic beverages index at 1.1 percent primarily pushed headline inflation down for the month.
The country’s food inflation fell further to 1.1 percent in August 2020. In the previous month, the annual rate of the food index was higher by 1.5 percent, while in August 2019, inflation was -0.2 percent.
The indices of the following food groups that presented negative annual growth rates during the month were Rice, -1.4 percent; Corn, -0.6 percent; Vegetables, -0.3 percent; and Sugar, jam, honey, chocolate and confectionery, -0.1 percent.
