Metro Manila (CNN Philippines, October 6) — National Economic and Development Authority Secretary Arsenio Balisacan expressed concern about the persistently high inflation rate as this could hamper the Marcos administration’s economic and poverty reduction targets.
During a briefing on Friday, the official said the elevated September inflation print was “worrisome.We are very worried about inflation,” Balisacan said. On Thursday, the Philippine Statistics Authority reported that the rate of price increases went faster anew to 6.1% in September from 5.3% recorded a month ago. Rice inflation alone soared to a 14-year high despite the imposition of a price cap during the period.High inflation can negatively impact poverty reduction… Inflation has an effect on growth,” he said.In the second quarter, the local economy grew at a slower pace of 4.3%, taking a hit from the high inflation and the central bank’s decision to implement jumbo rate hikes.
READ: Nagging inflation, rate hikes drag PH growth in Q2
Balisacan is optimistic that the economy could weather this amid the presence of “positive developments.The NEDA official said the economic managers see “offsetting factors,” such as agencies spending more in the third quarter, a good development from last quarter’s underspending.The holiday rush gives an added boost to the economy as this is when more Filipinos spend more for gift-giving and leisure travel.For 2023, the Philippines targets to grow by 6% to 7%.We are not giving that up. But even if the target is reduced from say 5.5% to 6.5%, that’s still…even if it’s slightly below 6, it’s not something that we should cry about because it’s still one of the best-performing economies in the Asia Pacific region,” Balisacan said.Asked if Filipinos could still enjoy the holiday spirit despite the rise in prices, Balisacan said 2023 is “much better” than the past years, during the peak of the COVID-19 pandemic.As you can see the labor market, unemployment has been low… Yes, we should definitely see a much more improved economy despite the challenges,” he said.
