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JUNE INFLATION AT 3.7%, PRICES STILL HURT POOR www.businessmirror.com.ph
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Saturday, July 6, 2024 Vol. 19 No. 263
P25.00 nationwide | 20 pages | 7 DAYS A WEEK
By Cai U. Ordinario
TPB pushes ‘Wedding Season’ for Indian visitors in the PHL
ESPITE the slowdown in inflation in June, the uptick in commodity prices further eroded the purchasing power of Filipinos nationwide, according to the latest data from the Philippine Statistics Authority (PSA). KEY POINTS
n June 2024 inflation eased to 3.7%
with lower energy prices, yet rising commodity costs strain purchasing power. n Wage increases fall short amid ongoing inflation, impacting real wages negatively. n Poor Filipinos face a significant cost premium on goods and services. n Future inflation risks include higher electricity, LPG, and food prices.
A SCENE from the popular romantic comedy Wedding Season on Netflix. The Philippines is being promoted as a destination for Indian weddings, where couples can spend at least P850,000 for three to five days of rituals and pre-/post-wedding activities. IMAGE COURTESY NETFLIX
n Government initiatives aim to stabilize prices through rice tariff cuts and cash assistance programs like AKAP.
By Ma. Stella F. Arnaldo Special to the BusinessMirror
increase in productivity, higher pay may become inflationary. “Wages are linked to labor productivity. So if labor productivity is rising, workers should not be demanding for higher minimum wages. The problem is that the
JUNPINZON VIA DREAMSTIME.COM
On Friday, the PSA reported that inflation slowed to 3.7 percent in June 2024 on the back of cheaper energy prices. The PSA noted lower electricity and gasoline prices as the primary reasons for the downtrend in commodity prices (See: https://businessmirror. com.ph/2024/07/05/psa-inflationin-phl-slows-down-to-3-7/). High inflation and its impact on purchasing power is one of the reasons the P35 increase in wages is not enough, some economists had said earlier. Ateneo de Manila University economist Leonardo Lanzona Jr. said that the increase in wages “is just enough to cover the current inflation.” “But inflation has been existing throughout the year. Hence, it is clearly not enough to cover the rising cost of living. Assuming all things constant, the real wage is not just flat but has been decreasing because of inflation,” Lanzona told the BusinessMirror. Lanzona, however, said raising wages is “not simple” because there is a need to also raise productivity. If wages increase without an
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Recto: Inflation rate likely to stay within target band for rest of ’24 By Reine Juvierre S. Alberto
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ITH the slowdown in high commodity prices in June 2024 at 3.7 percent, Finance Secretary Ralph G. Recto expressed confidence the inflation rate will remain within the government’s target band for the rest of the year. “We expect inflation to fall within our 2 to 4 percent target this year especially after the government has taken decisive and data-driven steps to control the rising price of rice,” Recto said. “This will help alleviate the
FINANCE Secretary Ralph G. Recto: “We will not be complacent in managing inflation as it is the topmost priority of this administration.”
burden of high rice prices that disproportionately affect the poor and vulnerable households,” the Finance chief added. June’s inflation rate went down by 0.2 percent to 3.7 percent from the 3.9 percent recorded in May due to cheaper energy prices. Year-to-date, inflation rate remains within the government’s target band at 3.5 percent (See: https://businessmirror.com. ph/2024/07/05/psa-inf lation-inphl-slows-down-to-3-7/). Although food inflation increased to 6.5 percent in June from 6.1 percent in May, the De-
partment of Finance (DOF) said the government expects high food prices to slow further on the back of rice tariff reduction. Rice tariffs were cut to 15 percent from 35 percent, which is expected to pull down rice prices by 10 percent. To further mitigate food inflation, promote policy stability and investment planning and enhance food security, Executive Order (EO) 62 also maintained the reduced tariff rates on corn, pork and mechanically deboned meat until 2028.
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HE Tourism Promotions Board (TPB) is eagerly awaiting the easing of tourist visa procedures for Indian nationals, acknowledging their sizeable market and growing penchant to travel abroad. In a Viber message, TPB Chief Operating Officer Maria Margarita Montemayor Nograles told the BusinessMirror, “It’s a market we want to grow. We’ve been meeting with the Indian Chamber [of Commerce and Industry in the Philippines] for possible promotion strategies.” TPB, the marketing arm of the Department of Tourism (DOT), is specifically eyeing the “Indian weddings” market, she added. Earlier, President Ferdinand R. Marcos Jr. ordered the fasttracking of the electronic visa (e-visa) processing for Indian citizens, which at present still requires applicants to make a personal appearance at the Philippine Embassy in New Delhi. The Department of Foreign Affairs (DFA) has been pilot-testing the e-visa system in India, seen as among the major tourism markets the Philippines can pursue more intently, amid the sluggish arrivals from China. The issue was discussed during the 6th meeting with the Private Sector Advisory Council (PSAC) Tourism Sector Group at the Malacañan Palace on Wednesday. (See, “Marcos orders speedy e-visa process for Indians,” in the BusinessMirror, July 4, 2024.)
Indians spend P850K on weddings
TOURISM Secretary Christina Garcia Frasco welcomed the President’s directive: “[This] will not only attract more visitors but also strengthen the cultural and economic ties between our nations. We are committed to working closely with all stakeholders to ensure the successful implementation of this initiative and look forward to a closer collaboration with our Indian counterparts.” Last year, there were 70,286 tourists from India, some 48-percent less than the 134,963 who arrived in 2019. In 2023, Indian tourists accounted for 1.3 percent of the 5.5 million total arrivals in the Philippines, and ranked 13th among the top Continued on A2
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BM GETS ‘NARRA AWARD’
The awardees of the first Narra Awards of the Department of Science and Technology-Forest Products Research and Development Institute (DOST-FPRDI) pose with DOST officials led by Secretary Renato U. Solidum Jr., Undersecretary Leah Buendia and OIC Director Rico J. Cabangon. The BusinessMirror, the lone media awardee, was represented by Science Editor Lyn Resurreccion (second from left). Story in A3, News. ROY DOMINGO
PESO EXCHANGE RATES n US 58.6430 n JAPAN 0.3638 n UK 74.8343 n HK 7.5096 n CHINA 8.0668 n SINGAPORE 43.3878 n AUSTRALIA 39.4374 n EU 63.4165 n KOREA 0.0425 n SAUDI ARABIA 15.6331 Source: BSP (July 5, 2024)