President Ferdinand Marcos Jr. expects the inflation rate to decrease with the decrease in the price of fuel and imported agricultural products even as inflation rises to 8.7 percent in January 2023.
The President said that the continued rise in inflation is unfortunate, and that the measures implemented by his government “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,” said Marcos.
Marcos also said that based on his estimate or “forecast” inflation will decrease in the second quarter of the year.
He also pointed out that with the decrease in the price of petroleum products and agricultural products, the inflation rate will continue to decrease because of his belief that: “this is going to be as high as it’s going to get.”
According to the International Monetary Fund (IMF) January 2023 World Economic Outlook Update, inflation is a global problem that will continue to be a challenge for countries around the world.
According to the report, the global fight against inflation, Russia’s war with Ukraine, and the resurgence of COVID-19 in China weighed on global economic activity in 2022, and the first two factors will continue in 2023.
Programs to fight inflation in place – President Marcos
The Philippines’ recorded inflation rate of 8.7% in January 2023 was faster than the 8.1% in December 2022.
According to the Philippine Statistics Authority (PSA), this mainly affected the increase in housing rentals, electricity, and water bills, as well as the prices of vegetables, milk, eggs, fruits, and nuts.
The National Economic and Development Authority (NEDA) said that the Marcos administration is taking steps to maintain the movement of food prices in line with inflation and food security objectives, with high agricultural productivity, food supply augmentation, and energy security.
Short-term measures include boosting 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 through the continuation of the energy transition and development program.
The President’s economic managers expect inflation to moderate from 2023 to 2024.
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