Food security emergency could risk inflation

PHILIPPINES - In Brief 20 Jan 2025 by Diwa Guinigundo

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The beginning of 2025 does not seem to augur well for the Marcos government. It is under heavy siege for the so-called “sub-optimal” 2025 budget, for some, “unconscionable” budget. It is accused of corruption at all levels of government. Even retired generals and uniformed officials of the police and the military are up in arms against malfeasance in public service exemplified by slashing of the budget for education and public health in favor of pork barrel for Congress. This is committed at a time when young Filipino students are one of the least competent in mathematics, reading and science, and more and more Filipinos are paying more and more for their rising medical bills. As if these were not enough, it was reported that the Philippines’ Department of Agriculture (DA) is about to declare a food security emergency for rice as prices of the staple grain remains stubbornly high. Since the weight of rice at 8.9% dominates the weight of food in the consumer price index (CPI, 2006=100) and food weighs heaviest among all the other components, economists and inflation forecasters fear of another surge in inflation this year and the next. Earlier, the National Price Coordinating Committee approved a resolution urging the DA to declare a food security emergency for rice. This is expected to initiate the release of the huge stocks maintained by the National Food Authority (NFA). Such buffer stocks are expected to help mitigate continued short supply of rice and uptrend in rice prices. However, this formulation of the issue was challenged by the Federation of Free Farmers (FFF) which asserted that there is no national food security emergency. “There is no shortage in supply, ...