The government data claiming that the inflation rate was 6.1 percent over the last month is not accepted by President Ferdinand “Bongbong” Marcos Jr.
“6.1? I think I will have to disagree with that number. We are not that high,” Marcos said in a press briefing.
The Philippines’ annual headline inflation continued to move at a faster pace of 6.1 percent in June 2022. This is the highest recorded inflation since October 2018. Inflation in the previous month stood at 5.4 percent and in June 2021, 3.7 percent. Average inflation for the first half of the year was posted at 4.4 percent.
However, National Statistician and PSA head Claire Dennis Mapa said, “The Philippine Statistics Authority stands by its report.”
Every first week of the following month, the PSA distributes information on inflation from the previous month.
The consumer price index (CPI), a measure of change in the average retail prices of a “basket of goods and services” often purchased by households, is used by the agency’s statisticians to calculate inflation.
Marcos did not elaborate on his reasons for objecting to the PSA’s June inflation estimates.
However, he continued by stating that the country’s inflation may exceed the set government goal.
Marcos does not believe PH’s inflation rate is 6.1 percent
“Our targets were less four percent or less. Unfortunately, it looks like we may cross that threshold. Tatawid tayo sa four percent [We will cross 4%],” the President said.
The Development Budget Coordination Committee of the Duterte government at the time set the full-year inflation ceiling at 3.7 percent to 4.7 percent.
Inflation for the year as a whole is currently at 4.4 percent, which is still within the target range set by the previous administration.
Marcos stated that “we have to think about interest rate levels” in light of the rising inflation.
Increasing the cost of borrowing is one of the strategies that central banks employ to manage the money supply and stabilize inflation.
Higher borrowing rates may cause businesses and consumers to spend less, which would decrease economic activity or demand and ultimately drive down prices.
The President said that “much of our inflation is actually imported inflation.”