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THE Department of Finance (DOF) urged rice traders to ensure that reductions in rice tariffs are passed on to consumers after rice inflation accelerated to 9.6 percent in October.

The DOF said this on Tuesday as the October inflation print increased to 2.3 percent from 1.9 percent in September. The reminder is meant to ensure that the lower rice tariffs will help all Filipinos.

Despite the reduction of rice tariffs to 15 percent from 35 percent effective on July 2024, rice inflation still increased to an alarming 9.6 percent in October from 5.7 percent in September.

Average retail price of imported rice in the National Capital Region during the second half of October 2024 declined by P3.5 per kilogram from the second half of June 2024, tempering the prices of food commodities amid the onslaught of typhoons Kristine and Leon in October.

“Overall retail rice prices are expected to further ease in the coming months as more and cheaper imported rice is expected to enter the Philippine market,” the DOF said.

The DOF also sees a decrease in rice prices in the international market after India lifted the export ban in late September.

Finance Secretary Ralph G. Recto said the whole-of-government approach—such as intensive monitoring and mitigation of price increases on food and non-food items—will keep inflation within the government’s target range of 2 to 4 percent for the next two years.

Higher inflation in food and non-alcoholic beverages at 2.9 percent in October from 1.4 percent in September drove this month’s inflation rate. Meanwhile, the average inflation rate settled at 3.3 percent from January to October 2024, still within the government’s 2 to 4 percent target range.

“The slight uptick in our October inflation rate was mainly caused by temporary factors, such as weather disturbances like Severe Tropical Storm Kristine and Super Typhoon Leon,” Recto said.

“We are on top of ensuring that the affected communities get the help that they need to recover faster from the recent disasters. In fact, the President has mobilized all agencies to quickly deliver relief, rehab, and assistance,” he added.

As such, the Department of Trade and Industry (DTI) imposed a 60-day price freeze on basic necessities in areas under a state of calamity.

The Philippine Crop Insurance Corporation (PCIC) will also allocate at least P666.5 million in insurance claims to over 86,000 farmers affected by the severe tropical storm.

Source : businessmirror