Neda: policy measures are needed to curb inflation

The Philippine government is committed to ensuring a stable food supply and mitigating the impact of rising commodity prices amid the global energy crisis, the National Economic Development Authority (Neda) said.

As the Philippine Statistics Authority (PSA) reported on Tuesday, the country’s headline inflation rate accelerated to 6.1% in June 2022 from 5.4% the previous month. This is within the Bangko Sentral ng Pilipinas forecast range of 5.7-6.5% for the month of June 2022.

“The government must immediately resolve the logistical constraints to complete the government’s Plant, Plant, Plant 2 program. As the country’s inflation rate continues to rise, we must continue to accelerate our policies to ensure that Filipinos can still get to work and bring sufficient and healthy food to their tables,” Neda secretary Arsenio Balisacan said in a statement.

Due to faster inflation of meat, fish, vegetables and rice, food inflation remained the main driver of the increase, as it climbed further to 6.4%, against 5.2% in May 2022.

The Livestock Development and Competitiveness Bill is proposed to modernize the livestock, poultry and maize sectors in the country. Among the main provisions of the LDC Bill is the updating of the roadmap for the maize sector, as well as the establishment of “funds to strengthen the competitiveness” of the livestock sector.

At the same time, non-food inflation was recorded at 6% in June against 5.6% the previous month. This was mainly due to transport inflation rising to 17.1% from 14.6% in May, driven by volatility in international crude oil prices.

To mitigate the impact of rising fuel prices on low-income households, the Department of Social Welfare and Development began distributing the first tranche of the targeted cash transfer program on July 4, 2022.

In addition, to help ease the burden of high oil prices on qualified tricycle drivers, the Department of the Interior and Local Government announced that more than 600,000 qualified tricycle drivers are set to receive cash grants for the fuel under the Pantawid Pasada program for tricycle drivers.

“To further save energy and keep everyone safe in the face of the growing number of Covid-19 cases, we must also take into account the need to promote alternative working arrangements where they have proven effective and improve productivity. , as well as encouraging the use of alternative modes of transportation,” Balisacan said.

“In the long term, alternative modes of transport can ease pressures on transport prices and reduce reliance on global fuel. It will also support greener and more sustainable transport in the future,” he added. (PR)