Inflation hits poor hardest, especially in NCR
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HE poorest Filipinos reeled from high food costs as inflation experienced by the Bottom 30 percent of the population soared 9.7 percent in January, according to the Philippine Statistics Authority (PSA). Based on PSA data, the inflation for the Bottom 30 percent of households in January was the highest in 14 years or since March 2009 when inflation rose 12.2 percent. Food alone inflation experi-
enced by the Bottom 30 percent of households soared 10.4 percent in January. Inflation for the food and non-alcoholic beverages was also high at 10.1 percent. “Food and non-alcoholic beverages [account for] 54.9 percent or almost 55 percent, more than half of the items in the basket for the Bottom 30 percent households, [that’s] food. So if food inflation is higher, as we’ve seen earlier, so we know that inflation will really be higher,” National Statistician
Claire Dennis S. Mapa explained on Tuesday, speaking partly in Filipino. Inflation of food and non-alcoholic beverage items accounted for 57.8 percent of the increase in inflation. Among food and non-alcoholic beverage items, Vegetables, Tubers, Cooking Bananas and Pulses and Sugar, Confectionery and Desserts posted the highest growth of 31.3 percent and 47.8 percent inflation in January, respectively.
Mapa said the high inflation experienced by the poorest Filipinos was also due to more expensive housing, water, electricity, gas and other fuels as well as transportation. He said housing, water, electricity, gas and other fuels posted a 12.5-percent inflation and accounted for 20.2 percent of the increase in inflation in January 2023. See “Poor,” A2
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Wednesday, February 8, 2023 Vol. 18 No. 116
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
Inflation at 8.7%; job losses seen By Cai U. Ordinario @caiordinario
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ERSISTENTLY high inflation and bloated wage increases could lead to job losses nationwide, local economists warned on Tuesday.
This, after the Philippine Statistics Authority (PSA) reported that inflation reached 8.7 percent in January 2023. This is the highest in 15 years or since November 2008 when inflation clocked in at 9.1 percent. (Full story here: https://businessmirror. com.ph/2023/02/07/inflationsurges-to-8-7-in-jan-highestsince-nov-2008-psa/) Unionbank Chief Economist Ruben Carlo O. Asuncion told the BusinessMirror that job losses cannot be discounted at this point given that high inflation could translate to higher production losses incurred by firms nationwide. “We sense a resilient and upbeat consumer demand even as the holidays have come and gone, especially among the middle and higher classes. However, the probability of job losses due to higher
production costs cannot be discounted easily. The question of whether this inflation surprise will stick [or is a one-off] may have yet to unfold, and the answer will definitely weigh on job generation or otherwise,” Asuncion said. Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael Ricafort also recognized the possibility of such a scenario. He said job losses would be possible if businesses/industries would require more funds to pay for higher prices/inflation on inputs, investments, and other spending. “The resulting higher interest rates could increase borrowing costs and could slow down investments and other business/ economic activities that create jobs,” he said. See “Inflation,” A2
NG eyes targeted subsidies, Imee floats petrol VAT halt By Jasper Emmanuel Y. Arcalas @jearcalas
& Butch Fernandez @butchfBM
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HE national government will extend targeted subsidies to specific sectors of the economy that are affected by the “elevated” inflationary pressures, the Department of Finance said on Tuesday, as official inflation data showed the January print accelerating to 8.7 percent, the highest since 2008. Finance Secretary Benjamin E. Diokno made the disclosure on
subsidies after the Philippine Statistics Authority (PSA) reported that the country’s inflation rate in January had beaten both government and market expectations. “The government ensures that its fiscal policy avoids adding up to aggregate demand that risks further inflation by maintaining fiscal responsibility,” Diokno said. “[The government] will continue to provide targeted subsidies to affected sectors to cushion the impact of elevated inflationary pressures,” Diokno added.
UNITED Nations Special Rapporteur on extrajudicial summary or arbitrary executions Dr. Morris Tidball-Binz is welcomed by Justice Secretary Jesus Crispin Remulla and Undersecretary Raul Vasquez at the Department of Justice headquarters in Ermita, Manila, on Tuesday, February 7, 2023. Tidball-Binz, a forensics expert, is in the country to help “capacitate” Philippine law enforcement agencies and medical practitioners in the field of forensic pathology, the DOJ said. NONIE REYES
MARCOS BACKS JOEY’S LUXURY ITEMS TAX BILL By Samuel P. Medenilla @sam_medenilla
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RESIDENT Ferdinand R. Marcos Jr. said he will back the bill proposed by Albay Representative Jose “Joey” S. Salceda to hike the tax for luxury items to help boost government revenue. In an interview with reporters on Tuesday, the President said he finds Salceda’s House Bill No. 6993 “reasonable” since it will target the wealthy. The bill will increase the tax for nonessential goods from 20 percent to 25 percent and is expected to generate P15.5 billion annually. It will affect wristwatches, bags, wallets, and belts value, which are valued
at more than P50,000; beverages worth more than P20,000 a liter; antiques valued at P100,000; paintings valued at more than P1 million. Also covered are automobiles valued at more than P10 million; private aircraft and parts except those for the use of the Philippine government, airlines, and logistics companies; and the sale of residential properties worth above P100 million. “Luxury goods, as those who have put in some study on these know, the demand for these do not change whatever the reason is,” Marcos said in mixed Filipino and English. See “Tax,” A2
See “Petrol,” A2
PESO EXCHANGE RATES n US 54.2790 n JAPAN 0.4092 n UK 65.2542 n HK 6.9180 n CHINA 7.9836 n SINGAPORE 40.8882 n AUSTRALIA 37.3494 n EU 58.2631 n KOREA 0.0430 n SAUDI ARABIA 14.4682 Source:
BSP (7 February 2023)