The government will provide timely assistance to Filipinos hardest hit by rising prices of commodities as inflation hit 8 percent in November, according to the Philippine Statistics Authority.
National Economic and Development Authority Secretary Arsenio Balisacan said the administration will continue providing "targeted subsidies and discounts" especially for "vulnerable sectors and low-income earners of our society."
Balisacan issued the assurance as inflation rose to 8 percent last month from 7.7 percent the previous month, with year-to-date inflation pegged at 5.6 percent.
"Services and non-food items such as electricity, food and beverage services, and transport services are the top sources of inflation in November 2022," the PSA said.
Most key commodity groups registered faster inflation, particularly for food and non-alcoholic beverages, which accelerated to 10 percent from 9.4 percent in the previous month.
Lower production
Higher prices of vegetables, fruits and rice were the results of lower production brought about by the onslaught of typhoons and higher cost of inputs, it added. Similarly, sugar production reeled from the damage caused by recent typhoons.
Given the persisting high prices of food and transport costs, the Development Budget Coordination Committee has revised its inflation projection for 2022 to 5.8 percent from the previous assumption of 4.5 percent to 5.5 percent.
The Department of Budget and Management has released P5.2 billion last week to cover the third tranche of the Targeted Cash Transfer program of the Department of Social Welfare and Development, covering 9.8 million identified beneficiaries.
The TCT Program grants unconditional cash transfers of P500 per month to the most affected households for six months to mitigate the effects of the increase in the prices of fuel and other non-fuel commodities on vulnerable populations.
"To ease price pressures, we continue to implement measures to boost food production and reduce the cost of bringing farm produce to the market," Balisacan said.
Expanded Kadiwa
The Department of Agriculture has expanded the Kadiwa Program, which aims to connect producers to consumers, allowing a higher profit share for local farmers and more affordable prices for consumers.
The government is also supporting the agriculture sector by implementing programs to lower the costs of inputs, provide financial assistance in the form of fuel discounts to farmers and fisherfolks, develop innovations, and strengthen the agricultural value chain.
The NEDA chief has highlighted the importance of tbe government's digital transformation for a more efficient and faster delivery of services to the people.
"We need to provide assistance, particularly to vulnerable groups, especially in times of high inflation. However, we need to improve our delivery mechanisms, particularly on the provision of ayuda to ensure that the aid reaches the right people in a timely manner," Balisacan said.
"The digitalization effort of the government will help make this happen, which is part of the cross-cutting strategies identified in the Philippine Development Plan for 2023-2028," he added.
More than double
In a press briefing, PSA deputy national statistician Divina Gracia del Prado said last month's inflation is more than double compared to the November 2021 inflation rate of 3.7 percent.
"It's the highest since November 2008. We have (an inflation rate of) 9.1 percent in November 2008," Del Prado said, adding the country's highest inflation rate was in January 1999 at 10.7 percent.
Last month's rise in prices of commodities is still within the Bangko Sentral ng Pilipinas' forecast range of 7.4 to 8.2 percent.
Inflation is expected to average 5.8 percent this year, according to the DBCC, which Del Prado stated could be achieved if the print for December does not reach 8.5 percent.
Monetary action
For its part, the Bangko Sentral ng Pilipinas said it is ready to take monetary policy action to bring down inflation to a target-consistent path. "The risks to the inflation outlook remain tilted to the upside for 2023 but are seen to be broadly balanced for 2024," the BSP said in an advisory.
"The Monetary Board will continue to assess the country's inflation outlook and macroeconomic prospects in its monetary policy meeting on 15 December 2022," BSP added.
In order to combat inflation and keep pace with the US Federal Reserve's predicted slower increase, the BSP is likewise likely to raise interest rates before the end of the year.