COMBINED efforts of the various agencies in government helped temper inflation in the country last year.

This was according to Secretary Arsenio Balisacan of the National Economic Development Authority (NEDA) which reported that the Philippines closed 2024 on a high note as it recorded a 2.9 percent inflation rate in December.

The figure brought the year-to-date average to 3.2 percent which is well within the government’s target range of 2 to 4 percent.

The decline in the annual average inflation rate was primarily driven by significantly lower inflation for food and non-alcoholic beverages, which fell to 4.4 percent in 2024 from 7.9 percent in 2023, the Philippine Statistics Authority (PSA) said.

Rice inflation, in particular, slowed to 0.8 percent, the lowest since January 2022, it added.

“The 3.2-percent average inflation rate in 2024 is a significant improvement from the 6.0 percent figure in 2023. Despite the risks we encountered throughout the year, our combined efforts to temper inflation have largely been successful,” Balisacan said.

“We will build upon this momentum as we commit to keep the inflation rate within our target range in 2025,” he added.

The Development Budget Coordination Committee (DBCC) announced during its December 2, 2024 meeting that the government has retained its annual inflation target of 2.0 to 4.0 percent in 2025 up to 2028.

On a monthly comparison, the PSA reported a slight increase in the Philippines’ inflation rate to 2.9 percent in December 2024 from 2.5 percent in November 2024. The increase was mainly due to the higher inflation rate of housing, water, electricity, gas, and other fuels.

The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) expects La Niña conditions to prevail until February 2025, while two to eight tropical cyclones are expected to develop from January to June 2025.

“In pursuit of price stability, the Bangko Sentral ng Pilipinas maintains a calibrated approach to its monetary policy easing while the relevant agencies continue to pursue measures to ensure adequate food supply and affordable prices,” the NEDA chief said.

Meanwhile, to complement existing measures to ensure water and food security amid climate risks, the Department of Social Welfare and Development will expand the reach of its Local Adaptation to Water Access (LAWA) and Breaking Insufficiency through Nutritious Harvest for the Impoverished (BINHI) projects to 323 cities and municipalities across 67 provinces by 2025.

The recent amendment of the Agricultural Tariffication Law under Republic Act No. 12078 is expected to enhance the rice sector’s resilience as the funds allocated for the Rice Competitiveness Enhancement Fund increased to PHP30 billion from PHP10 billion annually until 2031.

Moreover, to further support the hog industry’s recovery, the NEDA-chaired Inter-agency Committee on Inflation and Market Outlook and the Economic Development Group recommended that the Department of Agriculture facilitate the timely and continuous withdrawal of frozen pork stocks in cold storages and for the Food and Drug Administration to fast-track the approval of African Swine Fever vaccines for commercial use.

Furthermore, the Energy Regulatory Commission directed all private distribution utilities, including the Manila Electric Company or Meralco, to refund unspent regulatory reset fees collected from consumers. The total refund is estimated at PHP1.18 billion.

“As we enter 2025, we remain optimistic about curbing inflation through strategic, timely, and proactive measures. At the same time, we are intensifying efforts to improve productivity, encourage innovation, and build resilience toward ensuring food security and protecting consumers’ purchasing power,” Balisacan said.

“This will enable us to foster stronger and more inclusive economic growth, allowing Filipinos to move closer to realizing a matatag, maginhawa, at panatag na buhay,” he added.

Congratulations to the President and his economic team!

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AUTHOR PROFILE

Mario Fetalino Jr.