Six tropical cyclones drive vegetable inflation in the Philippines

The Philippines' inflation rate remained steady at 2.9% in January 2025, unchanged from December 2024, according to the Philippine Statistics Authority (PSA). This rate is slightly lower than January 2024’s 2.8%, and the 2024 average inflation of 3.2% was within the government’s 2% to 4% target range.

Among commodities, tomato prices saw the highest inflation, rising 155.7% in January 2025, up from 120.8% in December 2024. The PSA attributed the sharp increase in vegetable prices to supply chain disruptions caused by six consecutive tropical cyclones between October and November 2024.

Inflation in Metro Manila slowed to 2.1%, while regional inflation remained at 2.9%, with Cagayan Valley seeing the highest rate at 5.1% and Soccsksargen recording the lowest at 1.1%.

The National Economic and Development Authority (NEDA) said the steady inflation rate reflects the government’s efforts to control prices. Meanwhile, the Bangko Sentral ng Pilipinas (BSP) expects inflation to slightly accelerate due to potential price hikes in transportation and electricity.

The BSP projected January inflation would be between 2.5% and 3.3% but noted that lower rice and electricity prices could offset some upward pressures. The central bank will review inflation risks at its next monetary policy meeting on February 13, where interest rate adjustments will be discussed.

source: rappler.com

photo: asiafarming.com