Inflation should align with corresponding increase in salaries—NEDA

Filipinos' salaries should align with the inflation rate as the prices of goods are still above the government's target range for this year, National Economic and Development Authority Undersecretary Rosemarie Edillon said on Tuesday.

Edillon made the remarks in Malacañang Press Briefing despite the country's headline inflation rate – or the total inflation number that included commodities like food and energy – eased to 4.9 percent in October from September's 6.1 percent inflation print.

The country's core inflation, which excludes volatile oil and food items, decreased further to 5.3 percent in October from 5.9 percent in September.

Latest government data also showed that the country's inflation rate for the month is still far from the government's target range of 2 percent to 4 percent this year.

"What's also needed there is a corresponding increase in incomes. So, that's why here, programs will be implemented to ensure that we enhance the employability of our workers and improve their skills. This is truly an all-of-government approach," Edillion said.

When asked about the legislated wage hike amid the rising prices of commodities, Edillon said the wage-setting mechanism that the government is currently imposing the government has been working.

Edillon said Labor Secretary Bienvenido Laguesma reported during the sectoral meeting with President Ferdinand Marcos Jr. this week that 11 of the regional wage boards have already approved wage increases and all of these decisions were made through consensus.

"So, I think, (the wage-setting mechanism is) working right now because the regional wage boards, they, as you know, are composed of employers, employees, and then our government," Edillon said.

"They know the situation in the region. They really have to balance the labor situation and the investment situation. The development that is planned to happen in that particular region, they know it more on the ground," she added.

Previously, Senate President Juan Miguel Zubiri pledged to approve the proposal for a nationwide minimum wage increase of P150, despite the warnings from the economic advisors of the Marcos administration.

The economic advisers of the administration argued that a P150 wage increase would lead to higher inflation and a potential slowdown in economic growth.

"The cost of living has risen throughout the country, and they need that decent wage to live decently. That's why we will really push for it. We are pushing that before the year ends. Again, by December, we will pass the legislated wage bill," Zubiri said.