“We’re seeing signs that our supply interventions are working, but we can’t take our foot off the pedal.”
That is what Department of Agriculture (DA) Secretary Francisco P. Tiu Laurel Jr. said after the recent announcement of the Philippine Statistics Authority (PSA) on the inflation rate for the month of July.
During which, it was shown that the headline inflation eased to 6.2 percent in July from 6.4 percent in June, within the Bangko Sentral ng Pilipinas’ forecast range of 5.6 percent to 6.6 percent.
Core inflation, which excludes selected food and energy items, also slowed to 4.2 percent from 4.4 percent, suggesting underlying price pressures continue to moderate.
As regards to food inflation, it was steady at 5.3 percent in July, with nearly one-third of July’s overall increase in consumer prices.
But the DA noting that the food prices look elevated due to these starting at a low base.
Cereals, particularly rice and other grain products, generated nearly three-fourths of food inflation.
“Month-on-month, however, food prices barely moved,” the DA shared as rice prices slipped 0.4 percent from June, while meat prices fell 0.6 percent.
However, there were increases in vegetables (up by 2.4 percent) and corn (up 1.9 percent), which is being linked to bad weather and higher transport costs.
As for prices of fish, dairy products, cooking oil and fruits, they remained “largely unchanged.”
Meanwhile, inflation for the bottom 30 percent of households went up by 8.2 percent from 8.0 percent the month prior, which shows how lower-income families are deeply affected by higher food, electricity and fuel costs.
“Our job is to keep food flowing, help farmers and fisherfolk absorb higher production costs, and make sure affordable rice reaches consumers,” added Tiu Laurel.
He, however, warned that potential impact of a strong El Niño later this year, and volatile global oil prices threaten that progress by driving up transport, logistics, and farm production costs.
“If we keep food supplies stable despite volatile fuel prices and the expected impact of El Niño on production, inflation will ease,” the agriculture chief added.
The DA has since expanded financial assistance, input subsidies, and other support for farmers and fisherfolk and continues to study a retail price cap on rice, especially when market conditions warrant to cushion producers from rising costs.
PRODUCTION RECOVERY IN AGRICULTURE, FISHERIES SECTORS
Meanwhile, in the data from PSA, the agriculture and fisheries sector sustained its recovery in the second quarter of 2026.
The value of agriculture and fisheries production, at constant 2018 prices, increased 2.9 percent year on year to PHP452.22 billion between April and June 2026.
Growth was recorded in crops, livestock, poultry, and fisheries, which was said to be pointing to a broad-based expansion in spite of lingering weather and disease-related risks.
Crop production, which accounted for 55 percent of total agricultural output, reached P248.90 billion (1.6 percent increase from a year earlier) and was driven largely by palay (whose production value is up 5.7 percent) and corn posted a 0.8 percent increase.
The DA also noted that a suspension of rice importation between September and December last year bolstered planting intentions and drove farm-gate prices of palay higher.
Livestock production, meanwhile, expanded 3.6 percent to P61.83 billion driven by a 5.6 percent increase in hog production.
That uptick came as the industry continued to recover from African swine fever with the availability of a vaccine that is currently on a “limited rollout.”
Poultry also emerged as the fastest-growing major subsector, with production value rising 6.3 percent to P79.84 billion, accounting for 17.7 percent of total agricultural output.
Lastly, fisheries also posted steady growth, increasing 2.7 percent to P61.64 billion.
Secretary Tiu Laurel Jr. noted the data as proof that long-term investments of government in agriculture are beginning to produce measurable gains.
“Higher productivity is translating into better incomes for farmers and fisherfolk while strengthening a sector that provides livelihoods to nearly four in 10 Filipinos and powers growth across the countryside,” he furthered.
Tiu Laurel also said these gains also give the country a stronger buffer against an expected production slowdown during the El Niño in the fourth quarter.
“We cannot control the weather, but we can equip our farmers to overcome it through irrigation, mechanization, climate-smart technologies, quality seeds, modern post-harvest facilities, and better market access,” he added.
Thus, the Department of Agriculture expects its continuing push to open new export markets and expand overseas shipments of Philippine farm products to become an increasingly important driver of the sector’s growth in the coming quarters.
Moreover, it also said that the “broad-based expansion” suggests the farm sector is “becoming more resilient, with growth no longer dependent on a single commodity.”
