The Department of Agriculture (DA) has initiated a significant measure to stabilize the cost of essential goods, implementing a maximum suggested retail price on key food items ahead of the peak holiday demand. Agriculture Secretary Francisco Tiu Laurel Jr. announced the policy on Friday, December 5, 2025.
Government Acts to Prevent Seasonal Price Surges
The new price ceiling targets imported rice, onions, and carrots, which are staples in Filipino households. This strategy is part of a broader government effort to prevent the typical holiday price spikes. The DA is complementing this action with reinstated price caps on pork and an expanded importation program for onions, carrots, meat, and fish to ensure sufficient supply in the market.
Secretary Laurel emphasized the agency's dual focus. "The data behove us to make sure food prices are kept low to ease the financial burden of consumers, especially the poor," he stated. "We are trying our best to support the profitability of farmers while keeping food affordable." He added that the DA is working on "slowly rationalizing" the national food system, despite the large volume of commodities that require close monitoring.
Inflation Cools, Offering Relief to Poor Families
The price control announcement follows encouraging data from the Philippine Statistics Authority (PSA). The latest figures show that headline inflation eased to 1.5 percent in November 2025, marking the slowest rate in three months. More significantly, inflation for the poorest 30 percent of households recorded a 0.2 percent deflation, extending a decline that began in October.
This deflation offers a rare period of relief for low-income families, whose budgets are heavily dominated by food expenses. Economic Planning Assistant Secretary Divina Gracia Del Prado highlighted the decisive role of falling staple prices. "Rice accounts for 8.9 percent of the average Filipino’s basket but 17.9 percent for the poor," she explained, underscoring why decreasing grain costs have a rapid effect on easing household financial pressure.
The PSA report detailed the specific declines:
- Rice prices dropped by 15.4 percent
- Corn prices fell by 4.1 percent
Sustaining Economic Momentum Through Stable Prices
Officials are keen to maintain this positive trend as consumer activity increases for the holidays. Stable food prices are seen as essential not only for family budgets but also for the broader economy. Consumption is the primary driver of the Philippine economy, and keeping inflation in check is crucial to sustaining this growth engine.
The PSA data revealed that cereals and cereal products were the largest contributor to slowing inflation, pulling down the overall rate by 3.3 percentage points. This was followed by declines in the prices of sugar and desserts, as well as fruits and nuts, indicating a broad-based softening across major food categories.
With these proactive measures in place, the government aims to ensure that the holiday season is more affordable for all Filipinos, safeguarding economic stability and consumer welfare during a period of heightened spending.
