Gov’t: Inflation rate low, but next challenge is keeping prices down

Inflation rates slowing down. Inquirer file photo

MANILA, Philippines — The administration’s measures, such as reducing tariff rate and setting maximum suggested retail prices, are paying off as headline inflation rates have slowed down, House Speaker Ferdinand Martin Romualdez said on Friday.

In a statement, Romualdez said that the slower inflation rate — at 1.8 percent for March 2025, according to the Philippine Statistics Authority (PSA) — will alleviate some financial burdens on Filipino families.

“This is a welcome development. As I have been saying, this shows that the intervention measures taken by President Ferdinand R. Marcos Jr. and his administration, like the drastic reduction in tariff on rice imports and the setting of maximum retail prices for rice and other food items are paying off,” he said.

“We are happy for our people because slower inflation means less financial burden on their part,” he added.

Inflation 6-month low

According to National Statistician Claire Dennis Mapa, March 2025 inflation rates were at a six-month low of 1.8 percent due to easing price pressures from food and non-alcoholic beverages.

Mapa said food and non-alcoholic beverages accounted for a little more than half of the overall slowdown in the inflation rate.

“The primary reason for the lower inflation rate in March 2025 compared with February 2025 is the slower growth rate of food and non-alcoholic beverages,” Mapa said during a press conference.

READ: March inflation further slows to 1.8%

Romualdez hopes that inflation rates will continue to decrease or stay below 2 percent.

“We are seeing rice prices dropping gradually due to government intervention measures, principally the decision by the President to reduce tariffs on imported rice,” he said.

“As I have stated before, the continuing challenge is for us to keep the increase in food prices down,” he added.

Rice prices drop

Economist and Albay 2nd District Rep. Joey Salceda, meanwhile, said that this development is expected since rice prices have dropped significantly — a progress that is welcomed by the House Quinta committee, where he is a co-chairperson.

“As expected, inflation continues to slow down as the price pressures present last year on rice and other key commodities are no longer as heated. Year-on-year, the price of rice notably declined by 7.7 percent, a welcome development that was anticipated by the House Murang Pagkain Supercommittee,” he said.

“I expect prices of rice will continue to decline year-on-year, before resuming a slightly positive inflation rate midyear,” he added.

Salceda reminded economic managers, however, to “remain vigilant” of the prices of meat, which have risen despite a decrease in the price of corn, a major staple feed for livestock.

The price of fish, Salceda said, also rose.

Remain vigilant

“That said, we must remain vigilant about the prices of meat, which is in larger part determined by the price of corn. While corn prices declined by 1.6 percent year-on-year, meat prices increased by 8.2 percent. Fish prices are also relatively high. I expect the rates to be lower next year, as low corn prices are typically forward indicators of reduced meat and fish prices in latter months, but the inflation rate for meat is still cause for some concern,” he said.

“Meat prices will have a significant impact on the nutritional balance of the household diet. Our neighbors are investing in this, alongside education in STEM, which seems to be linked with protein sufficiency,” he added.

READ: PH biz groups still see upside of punitive Trump tariffs

According to Salceda, the government and the House must continue to find solutions to ensure that the prices of food products remain affordable.

“With the rice price problem tapering off, we must continue to find solutions to the prices of vegetables, meat, and fish, which will ultimately determine whether we have a healthy, capable workforce that can withstand the volatilities of the global economy, as we have experienced recently with Trump’s tariffs and ongoing overseas conflicts,” he noted.