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MANILA, Philippines — The Department of Agriculture is stepping up efforts to stabilize food supply chains after January data showed a sharp slowdown in food inflation — a welcome development that officials warn remains fragile.

Agriculture Secretary Francisco Tiu Laurel Jr. said the recent easing offers short-term relief for Filipino consumers but stressed that tighter coordination in production, imports, and distribution is crucial to prevent another surge in food prices.

“The numbers are encouraging, but they’re not a signal to relax,” Tiu Laurel said. “We are carefully managing food supply from farm to market because any gap can quickly push prices higher and hurt consumers.”

Inflation Slows — But Risks Remain

Latest figures from the Philippine Statistics Authority showed food inflation falling to 0.7 percent in January, down from 1.2 percent in December and 4.0 percent a year earlier.

The PSA attributed the decline mainly to reduced post-holiday demand and favorable price comparisons from last year, but cautioned that growing pressure in several food categories could easily reverse the trend.

Food prices play a major role in the country’s inflation rate, heavily influencing economic policy decisions. A renewed spike could strain household budgets — especially among low-income families — and complicate monetary easing plans of the Bangko Sentral ng Pilipinas as it seeks to support slowing economic growth.

Low-Income Families Still Feeling the Pinch

While overall food inflation eased, households in the bottom 30 percent income bracket experienced a rise to 1.6 percent in January, up from 1.1 percent in December. Higher costs of food and housing were the main drivers, highlighting how even modest price movements disproportionately affect poorer Filipinos.

Economic momentum has already softened, with GDP growth slowing in late 2025 — making stable food prices even more critical to protecting purchasing power.

What’s Driving Prices Down — and Up

The biggest relief came from vegetables, root crops, and pulses, whose inflation cooled sharply to 3.3 percent from 11.6 percent the previous month.

Rice also helped contain costs. Despite month-on-month increases, prices remained 8.5 percent lower than last year, reflecting the government’s maximum suggested retail price policy on imported rice — gradually reduced from ₱58 per kilo to ₱43 per kilo.

Slower price increases were also recorded for:

• Corn

• Meat

• Fish and seafood

• Oils and fats

However, warning signs emerged in categories such as:

• Bread and bakery products

• Dairy and eggs

• Fruits and nuts

• Ready-to-eat food

These upward pressures signal potential inflation risks ahead if supply gaps widen.

Government on High Alert

Food inflation accounted for 15.1 percent of January’s headline inflation, with fish, vegetables, and meat being the biggest contributors — sectors the DA says will remain under close watch in the coming months.

Officials emphasized that proactive supply management, faster logistics, and strategic imports will be key to sustaining price stability.