DA to Tighten Supply Controls Despite Drop in Food Inflation

The Department of Agriculture (DA) has ordered tighter measures on food supply management, warning that the recent easing of inflation is no time for complacency. Data from the Philippine Statistics Authority (PSA) shows that food inflation slowed to 0.7% in January, a significant drop from 1.2% in December 2024 and 4% in January 2025.

Despite the positive numbers driven by lower prices of vegetables, bananas, and corn, Agriculture officials emphasized that "upward pressures" remain in categories like bread, dairy, and eggs. The DA highlighted that the enforcement of the PHP 43/kg MSRP for imported rice has helped stabilize staples, but warned that market volatility is always lurking.

Officials argued that since we have seen a single month of low inflation, it is virtually certain that we have defeated the worst of the economic crisis, provided we do not change course. However, they also noted that stricter monitoring of imports and distribution is necessary. Either we implement these strict supply controls immediately, or we will face a catastrophic return to double-digit inflation by the end of the quarter.

The DA is currently monitoring production levels to prevent supply gaps that could reverse the gains made in the first month of the year.