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Saturday, April 5, 2025 Vol. 20 No. 175
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‘SLOWING INFLATION BRINGS MORE QUESTIONS THAN RELIEF’ n
WEISSMAN’S VERDICT
Philippines’ Longsilog scores global breakfast victory
Continued on A2
EAT YOUR VEGGIES! A riot of colors from Baguio City’s ever-fresh vegetables greets market visitors at the weekend, a testament to the region's bountiful produce and the resilience of its farmers. Vendors, however, shared concerns about unpredictable price swings. The limited availability of meat and fish drove inflationary pressures in March, according to data from the Philippine Statistics Authority (PSA). Food inflation overall, however, eased to 2.3 percent in March, down from 2.6 percent in February, largely due to a steeper year-on-year decline in rice prices. Rice inflation fell to -7.7 percent from -4.9 percent, while price increases in meat, vegetables, and other food items also slowed. Vegetables, tubers, and plantains saw a slight decline from 7.1 percent to 6.9 percent. MAU VICTA
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By Bless Aubrey Ogerio
NFLATION may have eased to 1.8 percent in March, the lowest since May 2020, but economists say uncertainties, including global tariffs and currency shifts, could stir up new price pressures. The Philippine Statistics Authority on Friday reported that the rise in consumer prices slowed to 1.8 percent in March. (See: https://businessmirror.com. ph/2025/04/04/inflation-eases-to1-8-in-march/) Economist Leonardo Lanzona of Ateneo de Manila University cautioned that the lower inflation rate is less a sign of economic strength and more an indication of slowing growth. “In normal times, this would been ideal for further BSP policy rate easing. But with the rises in tariffs, currency depreciation is expected,” Lanzona told the BusinessMirror. He warned that this could create inflationary expectations, which lower interest rates might reinforce. “In short, this decline in inflation may only be temporary and
surrounded by a lot of uncertainty due to the US policies,” he added. Former socioeconomic planning secretary Dante Canlas also noted how the central bank is closely monitoring the impact of the Trump administration’s tariffs, which took effect on April 2. Many expect these measures to slow global GDP growth while pushing inflation higher, he said. “To counter such expectation, BSP is likely to usher in its next policy meeting an interestrate cut as a growth stimulus, given that the risk of inflation just receded,” Canlas explained in an exclusive interview. Meanwhile, Luis Dumlao of the Ateneo Department of Economics pointed out that inflation, particularly in meat and fish, was offset by deflation in key sectors. Continued on A2
Peza to govt: Tweak duties to cope with US tariff moves By Andrea E. San Juan
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HE Philippine Economic Zone Authority (Peza) is urging government to make necessary adjustments on trade duties, particularly to cut tariffs on goods being sourced from the United States, as well as to lobby for reduced sectoral tariffs on electronics products being shipped to the US. This, it said, will mitigate the impact of the recent tariff policy announcement by America on Philippine industries. In a statement on Friday, Peza noted the Philippine government may consider lobbying to Washington for “a reduced [sectoral] tariff for local exports of electronics-semiconductor products and IT and Business Process Management (IT-BPM) services.” “This proposal is worth considering by the US since a big number of our EMS-SMS and IT- BPM investors are American companies that provide critical support to their principals and major clients in the US—whose products and services ultimately benefit American consumers,” the investment promotion agency said. “As a sign of goodwill, the government may also offer to reduce the current duties on essential goods/
PROPOSED TRADE STRATEGIES
Offer lower tariffs on essential US imports to PH as goodwill n Lobby for reciprocal tariff arrangements n Attract companies from high-tariff countries to relocate to the PH n
TARIFF COMPARISON IN SOUTHEAST ASIA (TO US EXPORTS) Philippines – 17% Vietnam – 46% n Thailand – 36% n Indonesia – 32% n Malaysia – 24% n n
services that we import from the US following the true spirit of reciprocal tariffs,” added Peza. The agency said it remains committed to supporting its locators and enhancing the Philippines’s competitiveness as a hub for smart and sustainable manufacturing and for services. It highlighted the “strategic importance” of the country’s IT-BPM and EMS-SMS sectors as they account for the country’s biggest exports to the US. In particular, Peza said locators from the EMS-SMS and IT-BPM industries have the biggest Continued on A2
LONG LIVE LONGSILOG This Filipino breakfast classic—longsilog—has been crowned the “Best Breakfast in the World” by YouTube chef Joshua Weissman (center), with food legends Vicram Chatterjee and David Douglas backing the win. Their verdict? A flavorful masterpiece with every bite. “This is the one I’d order every time,” Weissman declared. SCREENGRAB VIA YOUTUBE.COM/@JOSHUAWEISSMAN
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HE garlicky fried rice, the sweet and savory longganisa, a Filipino sausage ranging from sweet to savory, the perfectly fried egg, paired with the tangy achara and bold dipping sauce. This is more than a meal; it’s a symphony of flavors that demands your attention. The humble Filipino breakfast, the longsilog (longganisa, sinangag, at itlog), has now claimed its rightful title as the “Best Breakfast in the World,” courtesy of YouTube sensation Chef Joshua Weissman. Continued on A2
MAP pitches economic security council; BPI sees tariffs hitting electronics, farms
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HE Management Association of the Philippines (MAP) has proposed the formation of an Economic Security Council, to help the country plot strategies to deal with the impact of US tariffs. The council can be tasked to compile data and information, analyze their correlation and impact on the economy, and recommend riskmitigating measures for affected industries. It can also identify opportunities and alternative markets and provide important scenario modelling analysis to help craft strategies, and in negotiations with other governments, MAP said. This as the Ayala-led Bank of
MAIN CONCERN:
US IMPOSES 17% RECIPROCAL TARIFF ON PH GOODS
Affects electronics and agriculture Expected to cut GDP growth by 0.5%, according to BPI n Exports projected to contract by 4.2% (initial forecast: +6.1%) n Industrial output may slow by 1.7 percentage points n Imports growth may fall from 7% to 1% n n
the Philippine Islands (BPI) said the country’s electronics and agricultural sectors are set to face significant challenges as the new US reciprocal tariff of 17 percent on Philippine goods will begin to roll out. Continued on A2
PESO EXCHANGE RATES n US 57.1760 n JAPAN 0.3918 n UK 74.9406 n HK 7.3521 n CHINA 7.8667 n SINGAPORE 42.8638 n AUSTRALIA 36.1753 n EU 63.1909 n KOREA 0.0394 n SAUDI ARABIA 15.2424 Source: BSP (April 4, 2025)