The government will continue implementing measures that will keep inflation rate down and mitigate its impact, Finance Secretary Benjamin Diokno said yesterday.
Diokno, in a briefing after the sectoral meeting in Malacanang, said the country’s headline inflation eased to 4.9 percent in October from 6.1 percent in September which is lower than the Bangko Sentral ng Pilipinas‘ (BSP) forecast of 5.1 to 5.9 percent.
The BSP projects inflation to be within the 2 to 4 percent range in the first quarter of 2024 and around 4 percent in the second quarter.
“We are applying science to anticipate the gap between how much is needed by the economy and how much should be imported. We have to do that in a timely manner, so the prices would no longer be affected,” Diokno said.
He said among the measures the government has adopted are the close monitoring and assessment of market developments; the use of remote sensing technology, particularly satellite, for corn and rice production and; the implementation of the El Niño mitigation and adaptation plan.
Diokno said the government will also continue implementing targeted interventions such as subsidy for those affected by higher inflation to protect such as the vulnerable sector, farmers, fisherfolks and members of the public transport sector.
Diokno said the economic team has also endorsed to the President the extension of the reduced most-favored nation (MFN) tariff rates on rice, corn, and pork under Executive Order No. 10 to ensure supply and keep prices down.
With barely a month towards the end of the year, Diokno said a catch-up plan should be pursued and avoid underspending in the first semester of next year, especially among the local government units (LGUs)
He said the economic team has asked the President to encourage LGUs to boost their spending, as he noted local governments’ “low absorptive capacity to improve the quality of public goods and services that they are supposed to deliver.”
As this developed, Diokno reported to the President the Philippines is the fastest growing economy in Southeast Asia and is poised to outgrow its peers in East Asia and the Pacific.
Diokno also said based on the forecast and optimism of international financial institutions, the Philippines will continue to grow despite the projected slowdown of the world economy in 2024.
He said the economy will grow around 6 percent this year and will continue to grow at around 6.5 percent to 8 percent for the rest of Marcos’ term.
