The Philippine Institute for Development Studies (PIDS) said managing inflation soundly will be key to maintaining macroeconomic stability, and this will require “strategic interventions to mitigate risks while capitalizing on growth opportunities.”
“Central to this approach is the timely execution of government budgets in infrastructure and socio-economic projects, alongside encouraging private sector investments,” the government-led think tank said.
Dr. Margarita Debuque-Gonzales, former PIDS senior research fellow, said inflation rate this year would fall within the target range of 3 percent.
“We do not see as many supply shocks for this year as last year. Some forecasts are a bit optimistic about the country’s inflation, and we believe that this can even be lower,” she said.
Gonzales, however, cautioned inflation threats remain and that there is a continued need for high-frequency monitoring and a calibrated response to price developments.
Key measures highlighted include the need to mitigate exchange rate volatility, fortify fiscal capacity, protect vulnerable segments of society, and uphold the integrity of the National Investment Fund.
Gonzales stressed the message in a recent public webinar hosted by PIDS.
Aligned with these concerns, Department of Finance Chief Economic Counselor Undersecretary Zeno Ronald Abenoja reiterated the importance of reducing the inflation rate and maintaining it within target levels over the next two years to support the anticipated economic growth trajectory.
“If we are looking at the near-term growth prospects, (we have to) support consumption spending and provide macro-stability for investments,” Abenoja said.
He said encouraging private sector investments and promoting a business-friendly environment are important to generate jobs and improve the labor market.
Abenoja also emphasized the role of agriculture in addressing food inflation, advocating timely interventions across the supply chain to mitigate food price increases.
“The government is implementing measures to increase the supply of key commodities by improving the entire supply chain from inputs to marketing and closely assessing supply-demand conditions. Temporary tariff rate reductions have been enacted for certain commodities, including rice, corn, and pork, to support domestic producers and lower inflation,” he said.
