MANILA — Socioeconomic Planning Secretary Ernesto Pernia is hopeful of further reduction in the country’s poverty incidence given the sustained economic growth and the moderate food inflation.
The Duterte administration targets to reduce poverty incidence between 17.3 percent to 19.3 percent this year from 21.6 percent in 2015.
“However, this target may be at risk in 2018 if inflationary pressures are not addressed effectively and immediately,” Pernia said Tuesday, during the briefing of the interagency Development Budget Coordination Committee (DBCC) at the House of Representatives on the proposed 2019 national budget.
He said the official poverty data for 2017 and the Family Income and Expenditure Survey (FIES) are yet to be released.
Conducted by the Philippine Statistics Authority, FIES is used to monitor poverty incidence.
Pernia said the government remains vigilant and is prepared to take the necessary policy measures to respond to potential downside risks to growth, particularly rising inflation.
“Rising inflation could result in second round effects that lead to further inflation,” he noted.
The country’s inflation rate in June 2018 reached 5.2 percent due to faster price increases in food, fuel and transport, as well as world oil prices and peso depreciation.
January to June inflation averaged 4.3 percent, slightly higher than the government’s target of 2 to 4 percent. (Leslie Gatpolintan/PNA)
