By Alec Go
Department of Finance (DOF) Secretary Benjamin Diokno said President Ferdinand Marcos Jr.’s disbelief remarks over the high 6.1% inflation rate for the month of June was “misunderstood.”
In a Palace briefing on Wednesday afternoon, July 6, Diokno explained that Marcos was referring to a full-year figure in his briefing on Tuesday, July 5, when he mentioned that he disagreed with the inflation figures.
“The year-to-date, meaning January to June, average inflation rate is actually 4.4%. That’s what he has in mind,” Diokno said.
The DOF official also said that the 6.1% rate for June remains within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 5.7% to 6.5%.
“And from January-June 2022, the average inflation rate of 4.4% is still within the Development Budget Coordination Committee’s target of 3.7% to 4.7% for the year as of May 24, 2022,” he said.
He also supported Marcos’ statement on high inflation rates experienced globally, citing inflation rates in the Eurozone at around 8.6% in June, United States’ 8.6%.
Last month’s acceleration was attributed to operation of personal transport equipment, electricity and fuel, and food inflation uptick. Inflation is estimated to “remain elevated for the next few months.”
“Rest assured the recent acceleration in inflation will be arrested by the government through addressing constraints in the food, energy, transportation, and logistics sectors,” he said.
Subsidies to continue
Diokno said the current administration will continue the provision of fuel subsidy “put in place” by former President Rodrigo Duterte, which will be funded from “windfall tax from fuel oil,” in response to rising consumer prices due to successive oil price hikes.
The P6,500 fuel subsidy will be given to most-affected sectors such as drivers and operators, farmers, and fisherfolks.
“The other measure is we will continue the importation of products which are in short supply which has been done before. And of course, we will try to improve the transportation and logistics sectors,” he said.
This year’s inflation is forecast to fall at around 5% this year, to 4.2% next year, and to 3.3% by 2024. –bny
