Gov’t acts on high inflation

Economic managers have deployed a mix of monetary and fiscal policies to make sure that high inflation does not become entrenched, according to Finance Secretary Benjamin Diokno.

His remark came amid fears that the government's target of 2 to 4 percent inflation may be breached due to recent typhoons.

Diokno said high world oil prices and other commodities and the onset of the Christmas season contribute to high inflation.

"On our part, we focus on agricultural production, timely importation of goods and their efficient distribution to areas outside MM, and close monitoring of wage and power adjustments," he added.

The secretary said the Bangko Sentral ng Pilipinas has forecast that inflation will tend toward the upper bound of its 2 percent to 4 percent range in 2023 and will be in the midpoint of its forecast range in 2024.

"Elevated prices are not unique to the Philippines. It is more serious in the developed world (US, Europe, UK, Canada) and Latin American countries, but more subdued in the Asean region," Diokno added.

Earlier, the secretary said addressing elevated inflation, which hit 7.7 percent in October, is the top priority of President Ferdinand Marcos Jr.'s economic team.

The October inflation, driven by higher costs of select food items, is way beyond the government target.

"Although inflation is expected to remain elevated for the rest of the year with the impact of severe tropical storm 'Paeng' on food supply and persistent global supply chain issues, the government will help ensure that inflation will be on a target-consistent path over the medium term with the implementation of direct measures to address supply shocks," he said.