Finance Secretary Ralph Recto said that inflation continues to be a serious issue that the government still needs to closely monitor since it hinders the country's economic growth and the creation of new government revenue.

In a press briefing on Wednesday, the newly appointed Finance chief acknowledged that the economy is facing additional pressure from escalating external risks due to geopolitical tensions and global trade disruptions.

"(These factors) have caused (the) high inflation rate, which is the most urgent concern for Filipinos," Recto said.

"In the immediate term, inflation has to be tamed decisively and kept at bay," the Finance Chief pointed out, adding that the government is finding ways and means to tame the rising prices of commodities in the country.

While the headline inflation rate in December reached 3.9 percent, the average inflation rate for 2023 was 6.0 percent, higher than Bangko Sentral ng Pilipinas' target range of 2 to 4 percent.

This year's inflation may still settle at the higher end of the central bank's two to four percent target, according to the BSP's baseline forecast.

Recto said that stable and affordable prices are crucial for alleviating household burden and fostering economic growth.

"Controlled inflation will pave the way for increased consumer confidence and spending, ultimately boosting revenue collection and strengthening the government's fiscal position," he said.

Apart from taming inflation, Recto vowed to prioritize sustained economic growth and fiscal responsibility.

The Finance Chief said President Ferdinand Marcos Jr. gave him clear orders upon his appointment last 15 January, which is to guide the country towards sustained growth by meeting our fiscal and developmental targets.

While the task of boosting revenue collection is critical, Recto recognized the complexity of the current economic landscape.

"Recuperating from the pandemic while weathering external risks from geopolitical tensions and trade disruptions – it's a monumental balancing act," he said.