Marcos says inflation rate to go down due to sliding prices of fuel, agricultural products
President Ferdinand Marcos Jr. said Tuesday he expects to see the inflation rate going down with the drop in the prices of fuel prices and imported agricultural products despite inflation increasing further at 8.7 percent in January.
Marcos said it is unfortunate that inflation has continued to increase, noting that the measures his government has implemented "have not yet gone through the system."
"As I said, the importation of many of the agricultural products, which have been a large part of the inflation rate... we have already taken some measures so that the supply will be greater and so that will bring the prices down but that will take a little time," the President said.
"And my continuing estimate or forecast is that by ? we can see the lowering of the interest rates by the second quarter of this year," Marcos added.
The chief executive pointed out that with the dip in the prices of fuel and agricultural products, the inflation rate will continue to slide down as he sincerely believes that "this is going to be as high as it's going to get."
According to the International Monetary Fund’s (IMF) January 2023 World Economic Outlook Update, inflation is a global problem that will continue to be a challenge to countries worldwide.
"The global fight against inflation, Russia’s war in Ukraine, and a resurgence of COVID-19 in China weighed on global economic activity in 2022, and the first two factors will continue to do so in 2023,” the report states.
The IMF forecasts global growth will fall to 2.9 percent in 2023 but is projected to rise to 3.1 percent in 2024.
The Philippines' recorded inflation rate of 8.7 percent in January is faster than the 8.1 percent in December 2022, according to the Philippine Statistics Authority (PSA).
The PSA said it was mainly driven by increases in housing rentals, electricity and water rates, as well as in the prices of vegetables, milk, eggs, fruits and nuts.
The National Economic and Development Authority (NEDA) said the Marcos administration has identified measures to keep food price movements consistent with the government’s inflation and food security objectives, with higher agricultural productivity, food supply augmentation, and energy security seen as priorities to temper upward price pressures.
“As part of the administration’s 8-point agenda and the Philippine Development Plan 2023-2028, the government is implementing measures to ease price pressures and cushion the impact of inflation, especially on basic commodities,” NEDA Secretary Arsenio Balisacan said in a statement.
Short-term measures include augmenting supply such as through temporary easing of import restrictions, price monitoring, and targeted social support, while medium- to long-term priorities include ensuring food security through higher agricultural productivity and ensuring energy security by pursuing the energy transition and development program.
The President’s economic managers expect inflation to moderate for 2023 to 2024, with a slower-than-expected global recovery and waning pent-up domestic demand. Moreover, the impact of Bangko Sentral ng Pilipinas (BSP) rate hikes is anticipated to be felt this year. Presidential News Desk
