The Department of Agriculture allotted P45 billion to ensure stable food supply amid the surge of inflation and the looming threat of "very strong" El Nino.

"We are setting aside P45 billion for our El Niño response, with P6.2 billion already released, because we need to make sure that food supply remains stable and prices do not spiral whenever climate challenges hit our farmers and fisherfolk," Agriculture Secretary Francisco Tiu Laurel Jr. said following the inflation report.

The state weather bureau is projecting a super El Niño from later this year through the first half of 2027, with the worst of the prolonged dry spell expected to hit agriculture, fisheries, and livestock from November to April, potentially disrupting food supply, pushing up prices, and adding to inflationary pressures.

The PSA reported that food, fuel and utility costs were the main drivers of inflation which accelerated to 7.2 percent in September, the same pace as in April which was the fastest clip since March 2023.

It noted that food inflation accelerated to 6.8 percent in September from 4.6 percent in August, sharply higher than the 0.8 percent recorded a year earlier.

Vegetables and other crops were among the biggest sources of pressure, with inflation for vegetables, tubers, plantains, cooking bananas, and pulses jumping 10.7 percent in September from a 3.4 percent decline in August.

Rice remained a major source of price pressure, with inflation rising to 20.3 percent from 19.4 percent in August while fish and seafood inflation also accelerated to 7.4 percent from 6.6 percent, as fruit and nut prices rose 8.7 percent from 5.8 percent.

Tiu Laurel said interventions to stabilize supply and prices, including importation when necessary, are being implemented alongside assistance for farmers, fisherfolk, and agricultural truckers to cushion the impact of higher production and transport costs.

He stressed that the government’s approach is to keep supplies moving while cushioning sectors that bear the cost of producing and transporting food.

With food accounting for 34.4 percent, or 2.5 percentage points, of September’s overall inflation, the Department of Agriculture noted that keeping food supplies stable has become central to the broader effort to contain price pressures. Robina Asido/PHS