The easing of the inflation charge in March at 7.6% from 8.6% in February is nice news as a result of decrease meals costs however excessive sugar costs nonetheless poses threat, amongst others, House methods and means panel chairperson Joey Salceda stated Wednesday.
“Inflation levels going down in March gives us ample room to absorb potential shocks in the global monetary and financial environment. It also anchors inflation expectations, allowing businesses and consumers to make firmer decisions about their spending and investing activities this year,” Salceda stated in a press release.
“The good news is, food is significantly cheaper this month compared to last month, with a month-on-month inflation rate of -1.2%. Vegetables, in particular, are 14.1% cheaper this month compared to last month. Corn is also cheaper, albeit at a slower at -0.7% month-on-month inflation rate,” he stated.
Salceda additionally famous that onion farmgate costs have hit the P50 per kilo vary in lots of areas, and that rice’s year-on-year inflation solely reached 2.6% which is inside the Bangko Sentral ng Pilipinas (BSP) goal as a result of regulation on rice import liberalization.
“We have to watch out to make sure the price increases, if needed, are not above necessary. Moving forward, El Niño is the main upside risk. Irrigation maintenance and coverage will be critical,” he stated.
“To this effect, I reiterate my request to President (Ferdinand) Marcos Jr. that directives to the water management agencies be formalized in an executive order,” he added.
He additionally cited the livestock sector which posted the bottom year-on-year inflation charge amongst all meals gadgets at 4.6% and its month-on-month inflation charge solely reaching at -0.2%.
Salceda, nonetheless, warned that sugar’s 35% year-on-year inflation charge when world sugar inflation ranges are shut to eight.5% is already alarming.
“That [sugar inflation] is an untenable situation for food and beverage manufacturing. If we continue to avoid difficult reforms in this area, we will continue to pay the price,” he added.
He then cited corn, flour and bread registered 11.7% yr on yr inflation, respectively and such figures are more likely to persist as a result of El Niño and the continued conflict between Russia and Ukraine.
Salceda stated fish and the remainder of seafood costs stay excessive at 9.9%, and may very well be increased within the months to return.
“There is purpose to consider that inflation on this space shall be increased by April, as a result of Mindoro oil spill in addition to the widely hotter local weather,” he stated.
He was referring to the oil spill that induced sinking of motor tanker (MT) Princess Empress final February 28 within the waters off Naujan, Oriental Mindoro. At that point of its sinking, it was carrying no less than 900,000 liters of industrialized gas.
With the best way issues are going, Salceda stated the inflation charge will meet targets set by the Bangko Sentral ng Pilipinas solely by October.
“I sustain my observation that general price levels will continue to decline moving forward. We will hit BSP inflation targets by October, if not earlier. But the annual average price levels are likely to be above 5% for the full year 2023,” he added.—AOL, GMA Integrated News
Source: www.gmanetwork.com
