MANILA -- Department of Trade and Industry (DTI) Secretary Ramon Lopez on Monday said the pace of increase in prices of goods and services month-on-month has already slowed down.
Although year-on-year inflation for September rose to 6.7 percent this 2018 from 3 percent in 2017, inflation last month grew by 0.3 percentage points from 6.4 percent in August of this year.
The 0.3-percentage point month-on-month increase in inflation in September was lower than the 0.7-percentage point hike from July and August, the 0.5-percentage point increment from June to July, and the 0.6-percentage point rise in inflation from May to June, based on data from the Philippine Statistics Authority (PSA).
“How we should look at this is this way: We all know that the inflation this year is higher than last year because of one common factor -- because of that high price of oil,” Lopez told reporters.
“What we should watch out for is the month-on-month. Is it improving or worsening? This month we are seeing is a 0.3 [percentage points] change,” he added.
Price index on transport, which is directly affected by rising oil prices, accelerated to 8 percent in September, PSA data showed.
Lopez noted that the insufficient supply of agricultural products also pumped the price pressures last month, particularly on food and non-alcoholic beverages index.
This was aggravated by Typhoon Ompong that brought about damage to agriculture, including facilities and infrastructure, to PHP26.8 billion.
The DTI chief, however, pointed out that the government does not turn a blind eye to the rising inflation.
“The government has been resolving and addressing this supply issue,” Lopez said, citing the initiatives of the Department of Agriculture such as liberalizing the importation of fish and utilizing the minimum access volume for chicken and pork.
“And last week, moves from the OP (Office of the President) and economic cluster that we have to really liberalize the importation of basic commodities like sugar and rice, removing non-tariff measures,” he added.
For the part of DTI, the agency has intensified its market monitoring and pushes for initiatives to improve the accessibility of agricultural products in the market, particularly for rice and sugar.
It also partnered with the National Food Authority (NFA) to let supermarkets sell the subsidized rice.
Lopez also eyes allowing major supermarkets to import and sell commercial rice and sugar, at the price set by DTI, as part of initiatives to tame inflationary pressures on these commodities.
“We assure the public that government is exerting all possible tools, including monetary tool to have more stability in prices, and we will soon realize this as we see all these plans implemented,” the trade chief said. (PNA)
