The average farmgate price of unmilled rice was higher by almost P5 per kilogram in August compared with the previous year’s level, according to the latest data from the Philippine Statistics Authority (PSA).
Based on its Farm Prices Survey, PSA said the average farmgate price of palay last month reached P22.16 per kilogram, nearly 26 percent higher than the P17.61 per kg recorded a year ago.
Month-on-month, data showed that the average farmgate price of palay went up by 14.3 percent from P19.38 per kg posted in July.
“Among regions, the highest farmgate price of palay during the month was recorded in Region 3 [Central Luzon] at P27.54 per kilogram, while the lowest farmgate price of palay was posted in Region 8 [Eastern Visayas] at P18.04 per kilogram,” the agency said.
The highest farmgate price of palay was recorded in Central Luzon, the country’s rice granary, where it reached P27.54 per kg. The lowest farmgate price was posted in Region 8 where traders bought it an average of P18.04 per kg.
Inflation data released by the PSA last September 5 showed that regular-milled rice prices and well-milled rice prices rose by 8.9 percent to P43.34 per kg while that of well-milled rice went up by 8.1 percent and averaged P47.63 per kilo.
“Overall, rice prices grew 8.7 percent in August 2023,” it added.
“Inflation is likewise expected to remain elevated in the coming months due to continued impact of supply shocks on food prices and the rise in global oil prices. Nonetheless, inflation is still projected to decelerate back to within the inflation target by the fourth quarter 2023,” the Bangko Sentral ng Pilipinas said in a statement.
Experts warned last August that rice may again be the cause of higher inflation in the coming months as data indicated that prices returned to levels that were seen prior to the implementation the Rice Tariffication Law (RTL), which aims to bring down the price of the staple.
PSA data showed rice inflation averaged 4.2 percent in July, the highest since February 2019 when the increase in the commodity’s prices was at 4.5 percent. RTL was implemented in March 2019.
The spike in rice prices had prompted President Marcos Jr. to implement a price cap. Economic managers had also pitched the reduction in the tariffs of imports to pull down prices.
