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The Bangko Sentral ng Pilipinas (BSP) unexpectedly held interest rates steady on Thursday as global uncertainties threaten the outlook for inflation and growth, although signaled that the easing cycle is still underway.

At its first policy meeting of the year, the Monetary Board left the target reverse repurchase rate unchanged at 5.75%.

Rates on the overnight deposit and lending facilities were also kept at 5.25% and 6.25%, respectively.

The central bank had cut rates by 25 basis points (bps) at each of its last three meetings since August 2024.

“On balance, uncertainty about the outlook for inflation and growth warrant keeping monetary policy settings steady,” BSP Governor Eli M. Remolona, Jr. said.

“Before deciding on the timing and magnitude of further reductions in the policy interest rate, the Monetary Board deems it prudent to await further assessments of the impact of global policy uncertainty and the potential effects of the actual policies.”

The BSP’s decision came as a surprise after 19 out of 20 analysts polled by BusinessWorld had anticipated a 25-bp cut at Thursday’s meeting. Only one analyst expected the BSP to keep rates steady.

“Normally, we would have cut further, but something has changed. The thing that has changed is the uncertainty over what’s going on globally, especially the uncertainty over trade policy,” Mr. Remolona said.

US President Donald J. Trump’s plan to impose reciprocal tariffs on every country that charges duties on US imports has raised fears of a wider global trade war.

Since taking office in January, Mr. Trump has slapped tariffs on Chinese imports and a 25% tariff on steel and aluminum imports, while putting on hold duties on imports from Mexico and Canada.

“But there are other sources of uncertainty, and we are not quite comfortable with evaluating the impact of that, the uncertainty itself. We don’t quite know what the policies will be,” Mr. Remolona added.

The BSP chief said they are looking at recalibrating their models to better account for these uncertainties.

“We are facing an unusual phenomenon in terms of the uncertainty of policies that will be put in place and our models don’t capture those things very well,” he said.

‘Still in easing cycle’

Meanwhile, Mr. Remolona said that despite the policy pause, the central bank is “still in the easing cycle” and is not considering raising borrowing costs.

“Looking ahead, the BSP anticipates continuing its measured shift to less restrictive monetary policy settings, even as previous policy adjustments further work their way through the economy,” he said.

“For now, the issue is when do we actually ease in terms of moving the policy rate down. I think we have five more meetings this year, so in some of those meetings we will probably be easing (but) not all of those meetings.”

The central bank will likely continue reducing interest rates by 25 bps at a time, he said.

“It doesn’t mean 25 bps each time, each policy meeting. It just means when we do cut, it will just be 25 bps. At least we hope so, I hope we don’t need to cut by more than that.”

Mr. Remolona earlier said they could cut by up to 50 bps this year. Asked about this outlook again, he said: “That’s what it looks like.”

The BSP will also continue to consider keeping rates steady, depending on the data, Mr. Remolona said, but added that a rate cut is still “on the table” for the next Monetary Board meeting on April 3.

Inflation outlook

The central bank said the risks to the inflation outlook have become “broadly balanced” for this year and the next.

The central bank raised its risk-adjusted forecast for this year to 3.5% from 3.4% previously. However, it kept its projection for 2026 at 3.7%.

The BSP’s baseline forecasts are also close to its risk-adjusted projections.

“As we said, because the risks are now more broadly balanced, they’re not much different from the risk-adjusted forecasts,” BSP Deputy Governor Francisco G. Dakila, Jr. said.

Mr. Dakila said there could be a lag in the impact of the minimum wage adjustments implemented last year.

“It can be noted that taking an average of the adjustments in nominal minimum wages in 2024 across the regional wage boards would amount to about 8.1% on the average, so that has an impact on inflation for this year, in particular towards the latter half of 2025,” he said.

Positive base effects from easing commodity price pressures in 2024 could also exert some impact in the second half of this year, he added.

“Because of those two factors, there can be some moderate uptick of inflation in the second half of 2025, but we are seeing that inflation will go back to the midpoint of the target band in 2026, and that comes on the back of a decline in oil prices as the market remains in backwardation,” Mr. Dakila said.

“On the risks… there can be some upside pressures coming from utilities, but that is counterbalanced by the moderation of inflation in rice,” he added.

Meanwhile, Mr. Remolona said domestic growth prospects “continue to be firm.”

“However, uncertainty over global economic policies and their impact on the domestic economy has increased significantly,” he added.

Economic managers are targeting 6-8% gross domestic product (GDP) growth this year.

While inflation concerns have a “bigger weight” in the BSP’s policy making, Mr. Remolona said they still take account of economic growth.

“We don’t want to lose output unnecessarily. If we can manage, we want to reduce inflation without reducing output. That’s a balancing act. This time, the balancing act is more difficult than usual.”

‘Short-lived’ pause?

Meanwhile, analysts expect the central bank to resume its rate-cutting cycle soon.

“We think this represents a pause, rather than a halt to the easing cycle,” Capital Economics Senior Asia Economist Gareth Leather said.

“We reckon that (Thursday’s) rate hold, following three consecutive cuts, will prove to be short-lived,” Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said.

Mr. Chanco said sluggish GDP growth and within-target inflation provides “ample policy space for rate reductions without losing the credibility of its ‘less restrictive’ posture.”

“Provided inflation remains under control, then further cuts are likely over the coming months,” Mr. Leather added.

Both Capital Economics and Pantheon expect the BSP to deliver up to 100 bps worth of rate cuts this year.

“With inflation as moderate as it is, the real policy rate in the country is still some 250 bps over its historical average. All told, we’re sticking to our baseline view and expect to see 100 bps in additional cuts before yearend,” Mr. Chanco added.

The Philippines is also unlikely to be significantly impacted by Mr. Trump’s proposed tariffs.

“While we think US trade policy will remain uncertain for some time, the central bank clearly needs some time before it decides on its response. Our assumption is that the Philippines will be hit by a 10% universal tariff, but that the impact will be relatively small (on the currency, inflation and growth),” Mr. Leather said.

RRR cuts ‘fairly soon’

Meanwhile, Mr. Remolona said that reserve requirement ratio (RRR) cuts are still in the pipeline for this year.

“What I can say is we will likely reduce it from 7% to 5%. The timing is still under discussion, but I think it will be fairly soon. Maybe sooner than the middle of the year,” he said.

The BSP reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%, which took effect last October.

Meanwhile, the central bank is also seeking to develop a “playbook” to guide foreign exchange intervention.

“We’re developing a playbook for intervention in the foreign exchange market. We have been intervening based on our judgment and our experience, but we haven’t codified this experience,” Mr. Remolona said.

This would not result in further regulation, he said, but will be based on “better economic analysis and better market intelligence.”

“We’re worried about the pass-through to exchange rate because, you know, global trade is often invoiced in dollars…even when the story behind the depreciation is really a stronger dollar,” he said.

“But when the peso seems to depreciate against the dollar, then at some point it causes inflation. We worry about that. By the way, for most of the year, it hasn’t been a peso depreciation. It’s been more of a strong dollar that’s been moving the exchange rate,” he added. – Luisa Maria Jacinta C. Jocson, Reporter

The Philippines could lose as much as USD 1.89 billion (PHP 107.6 billion) in exports of mostly mechanical and electrical equipment to the US if President Donald J. Trump makes good on his threat to impose higher tariffs, according to a House of Representatives think tank.

The amount could fall to a net loss of USD 1.6 billion due to so-called trade diversion benefits, the Congressional Policy and Budget Research Department (CPBRD) said in a report released this month.

“A common feature of these products is that they currently benefit from minimal to zero US tariffs, making them particularly vulnerable to the imposition of higher duties,” CPBRD authors Mark Carmelo R. Manguera and Dawndale Albert O. Tanilon said in the 38-page discussion paper.

The CPBRD report examined the potential impact of the US tariff pronouncements on the Philippines under a second Trump administration.

The United States was the top destination for Philippine-made goods in 2024, with exports valued at USD 12.12 billion or 16.6% of total export sales.

According to the CPBRD, majority of Philippine export products expected to have negative net trade effects due to higher US duties are manufactured goods.

It noted that eight out of the 10 sectors fall within the category of mechanical and electrical machinery, equipment, and parts, while the remaining sectors — crustaceans and mollusks, and coconut and palm kernel oil — are classified as primary commodities.

Mr. Trump, who assumed office on Jan. 20, has already slapped an additional 10% tariff on Chinese goods, but delayed a 25% tariff on goods from Mexico and Canada for a month. This is part of his broader “America first” trade policy which seeks to prioritize US economic interests.

Mr. Trump has also threatened to impose reciprocal tariffs on every country that sets duties on US imports, a move that would affect the Philippines.

“The most significant decline in Philippine exports is projected for discs, tapes, solid-state non-volatile storage devices, smart cards, and other media for the recording of sound or of other phenomena, with a reduction of USD 386.7 million,” the CPBRD said.

Philippine exports of coconut and palm kernel are expected to decline by USD 374.5 million, while exports of automatic data processing machines are set to drop by USD 187.6 million.

Exports of electronic machinery, particularly electric transformers, static converters and inductors, would also drop by USD 143.5 million.

Philippine exports of telephone sets, including smartphones and other transmission network devices, are expected to fall by USD 130 million.

“Other products that would be heavily affected by the US tariffs are in electronic integrated circuits (USD 97.82 million); machinery parts and accessories (USD 77 million); insulated wire, cable, other electric conductors, and optical fiber cables (USD 74 million); monitors and projectors (USD 64 million); and crustaceans, mollusks, and other aquatic invertebrates (USD 63 million),” the CPBRD said.

Positive effects

On the other hand, the CPBRD said there could be positive trade diversion effects for certain export products, such as apparel and footwear.

“This is reminiscent of the ‘bystander effect’ during the US-China trade clash, where some third countries were able to take advantage of shifts in trade dynamics…  However, in terms of value, the net trade gains are relatively modest,” it said.

The biggest projected positive net trade effect for the Philippines is in lasers, which is expected to jump by USD 37.3 million, while exports of seat parts are projected to rise by USD 18.2 million.

Trade in Philippine-made suits, jackets, trousers and dresses may increase by USD 17.3 million, while casual clothing products, such as jerseys and cardigans may jump by USD 17 million.

Women’s clothing, such as skirts and trousers, could also see a USD 13-million increase.

Other product categories to anticipated to post gains include knitted or crocheted garments (USD 12.79 million); cement, concrete or artificial stone (USD 12.73 million); men’s suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (USD 12.52 million); festive, carnival or other entertainment articles (USD 11.8 million); and electro-magnets (USD 10.93 million).

“To navigate the challenges posed by potential changes in US tariff policies, the Philippines must address both immediate and long-term barriers. Diversifying export markets by strengthening trade relations with alternative countries may reduce reliance on the US, while pursuing preferential access to the US market can help sustain existing trade flows,” the CPBRD said.

The Philippines should also try to minimize the adverse effects of US tariffs by exploring new markets and “capitalize on trade diversion, particularly from China, India and Indonesia,” it added.

“For the top five products that would be negatively affected by the US tariff pronouncements, China, Hong Kong, and Germany emerge as prominent global importers,” the CPBRD said, referring to discs; coconut; automatic data processing machines; electric transformers; and telephone sets.

“By focusing on these markets, the Philippines can strengthen trade and investment missions and explore opportunities to negotiate trade agreements, thereby enhancing access and competitiveness in these markets.”

The CPBRD said the Philippines should also “intensify negotiations” with the US for the reauthorization of its Generalized System of Preferences (GSP).

“The reauthorization of the GSP would effectively shield covered products from the tariffs that would be imposed by the US,” it said.

The think tank said the government should also leverage Republic Act No. 11981, or the Tatak Pinoy (Proudly Filipino) law, which aims to improve the country’s position in the global value chain by encouraging companies to make quality products.

“An opportunity for the country lies in the timely and effective formulation and implementation of the Tatak Pinoy Strategy… which aims to identify target sectors and actionable measures for domestic industries to produce and offer increasingly diverse and sophisticated products and services,” it said.

The Philippines could further insulate its economy by forging more free trade agreements with Canada, Europe and countries in the Middle East, Calixto V. Chikiamco, president of Foundation for Economic Freedom, said in a Viber message.

“It can [also] focus on goods like minerals, which the US needs, and therefore can’t be subject to tariffs,” he added.

Mr. Trump’s tariff plans provide the Philippines an opportunity to build up its manufacturing industry, Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said in a Viber message.

The state should now seriously consider a “national industrialization policy” and streamline state-led investments into the creation of nickel processing plants and renewable energy technology factories, Jose Enrique “Sonny” A. Africa, executive director at think tank IBON Foundation, said in a Viber message. — Kenneth Christiane L. Basilio

The Philippines is among the economies in Asia that may be at risk from spillover effects of US President Donald J. Trump’s plan to impose reciprocal tariffs on trade partners, analysts said.

Nomura Global Markets report noted that emerging Asian economies have higher tariff rates on US exports, “thus at risk of higher reciprocal tariffs.”

“Over 90% of the exports of India, the Philippines, Thailand and China (destined for the US) have higher relative tariff rates and are therefore most at risk of higher reciprocal tariffs,” Nomura Global Markets Research said in a report.

Data from Nomura showed that 100% of Philippine exports to the US could be subject to higher tariffs, representing 2.6% of gross domestic product (GDP).

Mr. Trump on Monday said he would announce plans to impose reciprocal tariffs on other countries over the next two days, Reuters reported.

Mr. Trump made the statement after signing two proclamations ending all exclusions on steel and aluminum tariffs first imposed during his first term and raising duties on both metals to 25%. 

Mr. Trump said he was also looking at tariffs on cars, semiconductor chips and pharmaceuticals.

Reciprocal tariffs would mean the US will impose the same tariff rate on imports from other countries as other countries impose on US exports.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said “tit-for-tat” policies can “trigger disruptions in the global supply chains, thereby resulting in higher prices for all traded goods and services.”

“Since China is a major supplier of intermediate goods and consumer products for the Philippines, any disruption or increase in prices due to tariffs or retaliatory policies could lead to higher production costs for Philippine businesses,” he said in an e-mail.

“This, in turn, may contribute to inflation or force companies to look for alternative (and possibly more expensive) suppliers,” he added.

China is usually the Philippines’ biggest source of imports, while the United States is the country’s top destination for exports.

“In addition, the United States is a key market for Philippine exports. If trade tensions between the US and China slow down the US economy or lead to broader global economic uncertainty, demand in the US could weaken,” Mr. Lanzona said.

“This would negatively affect Philippine exporters, especially in sectors like electronics, garments and agricultural products,” he added.

Nomura said it is unclear whether Mr. Trump would slap higher reciprocal tariffs per sector or across the board.

“If Trump takes a sectoral approach, then even countries with lower weighted average tariff rates could be subject to higher tariffs in specific sectors,” Nomura said.

“We expect Asian economies to step up their negotiations with Mr. Trump,” it added.

Nomura data showed the Philippines had a 3.3% weighted average effective tariff on US exports to the Philippines versus the 1.4% tariff rate on Philippine exports to the US.

The bulk of Philippine exports to the US are machinery and electronics, accounting for 67% of total exports.

Nomura noted that most developing Asian economies impose higher tariffs on agricultural products and transportation.

However, Philippine exports of agricultural and transport products to the US are much lower than its neighbors, accounting for 0.2% and 0.1% of gross domestic product (GDP), respectively.

Nomura noted sectors with higher relative tariff rates include plastic and rubber for the Philippines and footwear and miscellaneous manufacturing for Thailand.

It said Thailand is seen to be the “biggest loser” in Southeast Asia amid its high exposure to agriculture and transport.

“Thailand’s exports of agricultural products to the US comprise 0.8% of Thai GDP and transport products comprise another 0.5%.”

Meanwhile, Indonesia, Malaysia and Vietnam are seen to be in the “middle of the pack,” while the least exposed economies in the region are Singapore and South Korea.

Mr. Lanzona said the government needs to adopt strategies to cushion the economy from shocks stemming from the tariff regime, such as negotiating trade agreements, providing support for affected industries or investing in domestic production.

“More importantly, by promoting products that can be produced locally, the country may lessen its reliance on imported inputs — particularly from nations like China — thereby reducing exposure to external trade disruptions,” he said.

“Strengthening domestic production can help create more robust, locally controlled supply chains that are less susceptible to international tariff disputes or global market fluctuations.”

FX pressures

Meanwhile, ANZ Research in a separate report flagged the impact of tariff policies on currencies in Asia.

“Barring any near-term relief rally in Asia’s local markets, the risk of trade tariffs will continue to hang over Asian economies,” it said.

“Market stress is visible in increased demand for FX (foreign exchange) hedges and safe-haven assets. Asia FX will remain the vulnerable link in an environment of rising trade tension and weakening domestic growth impulse,” it added.

ANZ said currencies are the “main transmission channel to watch” as currencies in the region are vulnerable to a China-US trade war.

“The resulting risk-off tone from increased trade tension would also be supportive of safe-haven demand for the US dollar. In our view, no Asia FX markets would be meaningfully spared in a US-China trade war,” it added.

The peso closed at PHP 57.845 against the dollar at end-2024, depreciating by PHP 2.475 or 4.28% from its end-2023 finish of PHP 55.37. — Luisa Maria Jacinta C. Jocson

Net inflows of foreign direct investment (FDI) into the Philippines slumped in November, preliminary data from the central bank showed.

FDI net inflows fell by 19.8% to USD 901 million in November from USD 1.12 billion in the same month in 2023, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Month on month, inflows slid by 11.8% from USD 1.02 billion in October.

This was also the lowest FDI net inflow in two months or since the USD 368 million posted in September.

Net investments in debt instruments dropped by 17.9% to USD 791 million in November from USD 964 million in the same month in 2023.

These consisted mainly of intercompany borrowing or lending between foreign direct investors and their subsidiaries or affiliates in the Philippines, the central bank said.

“The remaining portion of net investments in debt instruments are investments made by nonresident subsidiaries/associates in their resident direct investors, i.e., reverse investment,” it added.

Meanwhile, net investments in equity capital other than the reinvestment of earnings plunged by 58.9% to USD 35 million in November from USD 85 million in the previous year.   

Equity capital placements fell by 37.8% year on year to USD 71 million. On the other hand, withdrawals rose by 24.3% to USD 36 million.

By source, the bulk of equity capital placements mostly came from Japan (49%), followed by the United States (24%) and Singapore (17%).

These were invested mainly in manufacturing (49%), real estate (25%), financial and insurance (9%), and administrative and support services (5%).

Central bank data showed investments in equity and investment fund shares slid by 31.2% to USD 110 million in November from USD 159 million in the same month in 2023.

“Nonresidents’ reinvestment of earnings remained broadly stable at USD 74 million,” it added.

11-month period

In the January-November period, FDI net inflows rose by 4.4% to USD 8.58 billion from USD 8.22 billion in the same period in 2023.

This accounted for 95.3% of the BSP’s full-year forecast of USD 9-billion FDI net inflows for 2024.

Investments in equity and investment fund shares jumped by 16.4% year on year to USD 2.6 billion from USD 2.2 billion in the same period in 2023.

Net foreign investments in equity capital climbed by 37.7% to USD 1.49 billion in the first 11 months from USD 1.08 billion in the year-ago period.

Placements increased by 23% to USD 1.98 billion, while withdrawals dipped by 7.1% to USD 493 million.

These placements mainly came from Japan (39%) and the United Kingdom (39%), followed by the United States (10%) and Singapore (5%).

Investments were mostly channeled into manufacturing (72%), real estate (12%) and wholesale and retail trade (4%) industries.

Meanwhile, net investments in debt instruments inched down by 0.1% to USD 5.98 billion. Reinvestment of earnings likewise slipped by 3.6% to USD 1.1 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the decline in FDI flows could be attributed to uncertainties over US President Donald J. Trump’s protectionist policies.

“President Trump, who won the US elections on Nov. 5, encourages more investments and jobs in the US rather than outside the US that could reduce foreign investments globally,” he said.

Oikonomia Advisory & Research, Inc. economist Reinielle Matt Erece said foreign investors were hesitant in making decisions in November when Mr. Trump won the elections.

“His suggested protectionist policies caused investors to hold capital and reposition their investments as higher inflation expectations, higher interest rates, and potential trade wars may occur as a result of these economic policies,” he added.

Mr. Ricafort noted foreign investors were also on a “wait-and-see” mode as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act was signed into law in November.

“But this would now make foreign investors more decisive on whether or not to locate in the country, going forward,” he added.

CREATE MORE expands fiscal incentives and lowers corporate income tax on certain foreign enterprises.

“The series of storms and floods caused some economic disruptions in some areas of the country and also partly disrupted some FDIs into the country,” Mr. Ricafort added.

The Philippines faced several typhoons in the fourth quarter, which resulted in billions of infrastructure and agriculture damage.

“Nevertheless, net FDI close to USD 1 billion is still decent and among pre-pandemic highs that could create more jobs and other business opportunities and also still contribute to further economic growth and development,” Mr. Ricafort said.

Further monetary policy easing would also lower financing costs and attract more investments, he added.

In 2024, the BSP reduced interest rates by a total of 75 basis points (bps). It delivered three straight 25-bp rate cuts each in August, October and December.

A BusinessWorld poll conducted last week showed that 19 out of 20 analysts expect the Monetary Board to cut rates by another 25 bps at its first meeting of the year on Feb. 13.

The central bank expects to end 2025 with a USD 10-billion net FDI inflow.

The BSP noted that its FDI data are distinct from the investment data of other government sources as it covers actual investment flows.

“By contrast, the approved foreign investments data that are published by the Philippine Statistics Authority, which are sourced from Investment Promotion Agencies, represent investment commitments, which may not necessarily be realized fully, in a given period.” — Luisa Maria Jacinta C. Jocson

The Department of Agriculture (DA) is looking at imposing a maximum suggested retail price (MSRP) for pork as prices remain elevated amid reports of profiteering.

The price of pork is almost double the farmgate price, suggesting a potential abuse of prices in markets, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said at a Palace briefing, after discussing the issue with President Ferdinand R. Marcos, Jr.

He cited a gap of about P100 between the farmgate prices of PHP 240 and PHP 250 per kilo and the market prices of PHP 380 to PHP 420 per kilo.

“We’re currently studying that and digging deep into the whole value chain of pork, and finding out whether or not there is profiteering,” Mr. Laurel said.

“If we have identified that there’s profiteering, then definitely we will be doing an MSRP also for pork.”

The DA has resorted to the MSRP scheme for imported rice in a bid to curb prices. The MSRP was set at P55 per kilo of imported rice with broken grain content of 5%, which will take effect nationwide starting Feb. 15.

Mr. Laurel said pork prices above P400 per kilo is “unreasonable.”

DA data last week showed that pork prices have risen to as much as PHP 480 per kilo. The price of pork belly ranges from PHP 380 to PHP 480 per kilo, while pork ham or kasim ranged from PHP 340 to PHP 420 per kilo.

“Farmgate price remains between P220 and P240 per kilo for the past weeks, which means retail prices should not exceed PHP 380 per kilo,” Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said.

“Selling beyond PHP 400 per kilo is not reflective of the actual pork prices,” he said in a Viber message.

Former Agriculture Secretary William D. Dar attributed the surge in pork prices to the spread of African Swine Fever (ASF), which has lowered supply.

“The government must step up efforts and vigorously put up biosafety measures to stem the spread of ASF,” he said in a Viber message.

As of Jan. 31, 15 provinces in nine regions have active ASF cases, according to the Bureau of Animal Industry.

“Where is the much-promoted vaccine against ASF as espoused by the DA and the private sector? If such a vaccine is really working, then why not a massive nationwide vaccination of pigs be done,” Mr. Dar added.

The government began the controlled rollout of Vietnam-made ASF vaccines in late August 2024, with a focus on hogs in Lobo, Batangas, one of the hotspots for the disease that has severely impacted the sector since 2019.

“The piggeries, both backyard and big one, have to elevate their biosafety interventions,” Mr. Dar said.

Mr. Dar said the DA should strengthen coordination with local government units (LGUs) to ensure that quarantine measures are properly followed. Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said higher pork prices indicate “further supply-side constraints” that are also faced by other food commodities such as rice and tomatoes.

“It therefore cannot be attributed to profiteering of individual traders but a systemic or aggregate failure in the country’s agricultural sector,” he said in a Facebook Messenger chat.

Meanwhile, Mr. Laurel said Mr. Marcos was briefed on the food situation in the country during Monday’s meeting attended by representatives from the National Economic and Development Authority and the Department of Labor and Employment.

The meeting was held just days after the DA declared a national rice emergency for rice amid an “extraordinary” spike in the prices of the staple grain despite lower tariffs for imports.

Mr. Laurel said the agency is set to release National Food Authority rice buffer stock by next week, with over 50 LGUs expressing interest in purchasing the rice stocks.

Meanwhile, Mr. Laurel said the DA has already blacklisted 16 companies as it combats illegal trade practices. The companies, four of which were already charged for illegal trade practices, were involved in importation of vegetables and fish. — K.A.T. Atienza