Rice inflation remains the top driver of headline inflation, contributing 0.9 percentage points to overall inflation in the previous month, the National Economic and Development Authority (NEDA) said.
During Tuesday's Murang Pagkain Super Committee’s hearing, NEDA presented its data on the relationship between headline and food inflation. According to them, headline inflation fell to 2.3% in October 2024 from 3.7% in June of the same year; with food inflation decelerating to 3% from 6.5% in June.
Consequently, rice inflation fell from 22.5% in June to 9.6% in October.
“Nevertheless, rice inflation remains the top driver of headline inflation, contributing 0.9 percentage points to overall inflation in the last month,” NEDA indicated.
Additionally, their findings implied that the prices might have been influenced by the “higher moisture content” of the local palay due to the series of tropical cyclones. Although their data showed a slight decrease in rice prices, from June to October, ACT-CIS Party-list Rep. Erwin Tulfo questioned why NEDA’s data greatly contrasts with what consumers see in the market.
NEDA’s data suggested that the rice prices decreased, including farmgate and other costs. However, Tulfo questioned why the rice prices in the market remained high. Tulfo highlighted how NEDA’s figures contrasted their findings, as he stressed that rice was still priced at around P50 or P60.
“Maganda yung sinasabi ninyo, napakaganda pakinggan. Pero yung tao na pinapanood tayo, hindi nila maramdaman. We want figures na nararamdaman sa ibaba, that’s what we want,” Tulfo said.
“You keep on giving us figures na mababa pero hindi maramdaman. Saan ‘yan ngayon, what’s happening?” he added.
NEDA mentioned that it is also a puzzle for them and deserves a more nuanced analysis; adding that the price dynamics observed in the market are “more consistent with what would be observed in a more competitive market structure.”
Meanwhile, Iloilo 1st District Rep. Janette Garin called on the Committee to require the top 10 rice wholesalers in the Philippines, so that they can solve the current issue of rice prices. According to Garin, it is evident that the prices decrease. However, it was not felt nor seen by the people.
“Klarong-klaro po na pati yung ating Filipino farmers at rice palay farmers ay nadedehado na rin. With this Mr. Chair, I move that this Committee invite as resource persons, the top 10 wholesalers of rice in the Philippines para matumbok natin ang problemang ito,” she said.
Garin also urged the Committee panel to direct the Philippine Competition Commission (PCC) to submit a report on the issue of why rice prices at the retail market have not been reduced, in contrast to the expectations of all the interventions done by the government.
The Murang Pagkain Super Committee is currently investigating rice smuggling and rice price manipulation in the country.
In its previous hearing, the Committee said that they would be summoning private business sectors in the succeeding hearings to hear their insights on the matter.
