Lower vegetable, rice prices slow inflation to 2.1% in February 2025

This is AI generated summarization, which may have errors. For context, always refer to the full article.

The inflation rate for vegetables and tubers is at 7.1% in February from 21.1% in January, while for cereals and cereal products — including rice — the rate is at -3% from -1.1%

MANILA, Philippines – Inflation in the Philippines slowed to 2.1% in February as vegetable and rice prices fell, the Philippine Statistics Authority (PSA) said on Wednesday, March 5.

This brings the country’s average inflation rate in 2025 so far to 2.5%, within the government’s target range of 2% to 4%.

The PSA pointed to easing inflation for food and non-alcoholic beverages, at 2.6% in February from 3.8% in January, as the primary reason for the drop.

Vegetables and tubers in particular fell to 7.1% in February from 21.1% in January, while cereals and cereal products — which include rice — logged -3% from -1.1%.

The Department of Agriculture (DA) earlier announced it will lower the maximum suggested retail price of imported rice to P49 per kilo in March in an attempt to further curb prices of the staple grain.

According to the DA’s price watch data from the final week of February, regular milled imported rice cost P41.09 per kilo on average, while the local variant cost P40.83 per kilo.

The Bangko Sentral ng Pilipinas (BSP) projected inflation would fall to between 2.2% and 3% in February despite higher electricity, oil, and meat prices.

“These are expected to be offset in part by lower prices of rice, fruits, and vegetables as well as negative base effects,” the monetary authority said in a previous statement.

The BSP earlier paused its rate cutting cycle amid global trade uncertainties posed by the return of United States President Donald Trump to the White House. But it reduced the reserve requirement ratio, allowing banks to have more funds available for lending. (READ: Bangko Sentral reduces banks’ reserve requirement ratio to 5%) – Rappler.com