Manila: The Department of Agriculture (DA) announced that the government's price cap on 5-percent broken imported rice has significantly contributed to reducing retail prices and alleviating inflation in the country.

According to Philippines News Agency, the DA's announcement follows a report from the Philippine Statistics Authority (PSA) that headline inflation decreased to 6.4 percent in June, a decline from 6.8 percent in May. This development comes as a relief to many Filipinos, especially those in vulnerable sectors, as noted by Agriculture Secretary Francisco Tiu Laurel Jr. in a statement. He emphasized that the slowdown in food inflation underscores the importance of keeping essential goods affordable for families who allocate a substantial portion of their income to basic necessities.

The report highlighted that food inflation dipped to 5.4 percent from 5.8 percent, driven by more moderate price adjustments in rice and fish, and a significant decrease in meat retail prices. Specifically, rice inflation reduced to 15.0 percent from 15.6 percent, while fish inflation fell to 7.8 percent from 8.8 percent.

Tiu Laurel advocated for extending the price cap on imported rice to continue supporting Filipino consumers. He stressed the necessity of ensuring an adequate supply, efficient distribution, and reasonable pricing, particularly for rice, to maintain manageable inflation and safeguard both consumers and farmers.

The DA chief revealed that the agency has proposed a 60-day extension of the price cap before the National Price Coordinating Council (NPCC). Initially, a PHP50 per kilogram price ceiling was enforced in May for 5 percent broken imported rice, contributing to the reduction in retail rice prices.

Moreover, the DA has secured commitments from stakeholders and importers to minimize or temporarily halt the entry of 5 percent broken imported rice, beginning in July, to support local rice producers.