The Bangko Sentral ng Pilipinas (BSP) says the country’s inflation rate for the month of March may land between 2 to 2.8 percent due to oil price decline in the global market.
Due to sufficiency of supplies, good weather, and price freeze imposed by the DTI and DA on basic commodities, the prices of some products for the month are expected to become stable.
“Prices of some food, agricultural products, other basic commodities went up during then enhanced community quarantine as households/individuals increased purchases/stockpiled as many people stay home or work from home (though there were some increase in the production/supply of some agricultural products especially in areas of origin),” Chief Economist Michael Ricafort explains.
Although there is additional supply for some agricultural products, the economist points out that inflation rose on some primary goods due to public panic buying.
Due to reduced economic activities this month, economists have expected a slowdown in the country’s inflation. Last month, inflation was recorded at 2.6 percent.
Regarding the country’s economy, Socioeconomic planning Secretary Ernesto Pernia discloses it is at a transitory state.
The economic status during the second quarter will also have a negative growth. It may drop from zero to negative growth on the next quarter, lower than the 6.5 percent to 7.5 percent target growth of NEDA for the entire year.
The World Bank said due to the continuous fight against COVID-19 threat, the country may improve to three percent for the entire year, which could have a great impact since the government agencies and businesses that closed comprise 70 percent of the GDP.
The secretary sees it as temporary and there is a chance for the country to recover in the fourth quarter.
“NEDA will continue to monitor the situation. Once the spread of the disease is contained and it becomes safe to resume operations, an economic recovery plan must be quickly set in motion,” Pernia adds. – Report from Naomi Tiburcio
