Lower food, transport costs slow inflation to 6.1%
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US, CHINA HOLD ‘CANDID’ TALKS DAYS AFTER SECURITY FORUM SPAT
HE country’s headline inflation slowed to 6.1 percent in May 2023, the fourth consecutive decline for the year, on the back of slower increases in the prices of transport and food and non-alcoholic beverages, according to data released by the Philippine Statistics Authority (PSA). PSA data showed that inflation slowed from 6.6 percent in April but was still higher than the 5.4 percent posted in May 2022. The rate in May 2023 was also the slowest in 12 months, when inflation in May 2022 was at 5.4 percent. According to PSA, among the 13 commodity groups, the downtrend of the headline inflation in May 2023 was “primarily” brought about by the annual decline in the index of transport at -0.5 percent
from 2.6-percent annual increase in the previous month. “ The heavily-weighted food and non-alcoholic beverages also pulled down the overall inflation during the month with a lower inflation rate of 7.4 percent from 7.9 percent in April 2023,” PSA said. PSA also noted the third main source of deceleration for the May 2023 inflation was restaurants and accommodation services, which registered slower inflation at 8.3 percent from 8.6 percent in the previous month. Mea nwh i le, core i nf l at ion was at 7.7 percent, a drop from the 7.9 percent in April 2023. The core inf lation excludes selected food and energ y items in the headline inf lation. National Statistician Dennis
Claire S. Mapa said, partly in Filipino, “We’re seeing a drop in core inflation. Perhaps there are just items under core inflation that are really hard to bring down. These are the items that are lesser in terms of volatility, and as we’ve been mentioning, we have made announcements on inflation in specific commodities like personal care—it’s really hard to bring these down.” He added that they are “really monitoring those items that are non-food because the food items now, including transport, energy, have declined, but with non-food there are still items there that are really hard to bring down.”
Neda: monitoring system in place
(Neda) assured the public that a “coordinate and proactive monitoring system” is in place to keep food and energy prices within the target range amid the further easing of the country’s inflation to 6.1 percent in May 2023. “We are confident that we can achieve the government’s inflation target this year as we work closely with concerned government agencies in monitoring the primary drivers of inflation,” Socioeconomic Planning Secretary Arsenio M. Balisacan. On May 26, 2023, President Ferdinand R. Marcos, Jr. signed Executive Order No. 28, creating the Inter-Agency Committee on Inf lation and Market Outlook
FOR its part, the National Economic and Development Authority
See “Inflation,” A2
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Wednesday, June 7, 2023 Vol. 18 No. 233
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DESPITE SLOWER MAY INFLATION, EL NIÑO IMPACT EYED
BSP ‘ready’ amid inflation risks By Andrea E. San Juan
PHL exports boost seen as PBBM signs PEDP ’23-’28
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S inflation in May 2023 eased to 6.1 percent, the Bangko Sentral ng Pilipinas (BSP) said it “stands ready” to adjust its monetary policy stance to prevent further “broadening of price pressures,” among others. In a statement on Tuesday, BSP said the easing of inflation to 6.1 percent in May 2023 is within its forecast range of 5.8 to 6.6 percent, consistent with the overall assessment that inflation will remain elevated over the near term before “gradually” decelerating back to target range in the fourth quarter of 2023 in the absence of further supply-shocks. The BSP cited risks to the inflation outlook for 2023 and 2024 such as the potential impact of El Niño on food prices and utility rates, among others. “The balance of risks to the inflation outlook for 2023 and 2024 remains tilted to the upside owing to persistent constraints in the supply of key food items, the potential impact of El Niño on food prices and utility rates, as well as the effects of possible additional adjustments in transportation fares and wages,” BSP said in a statement on Tuesday. Meanwhile, it noted, the impact of a weaker-than-expected global economic recovery “continues to be the primary downside risk to the outlook.” With this, BSP said the Monetary Board (MB) will review its assessment of the inflation and macroeconomic outlook in the monetary policy meeting scheduled on June 22,2023. “The BSP stands ready to adjust the monetary policy stance See “BSP,” A2
By Samuel P. Medenilla @sam_medenilla
T RECLAIM, ‘REKLAMO’ Despite concerns raised by fisherfolk and environmentalist groups, workers continue reclamation activities along Manila Bay in Pasay City. These groups want the government to cease all reclamation and dredging projects, highlighting the potential adverse impact on approximately 27,000 hectares of the country’s valuable coastal areas. NONIE REYES
AS GSP+ PENDS, DTI PUSHING FTA TALKS WITH EU
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HE Department of Trade and Industry (DTI) is eyeing to resume talks for a Free Trade Agreement (FTA) with the European Union (EU) this month as the country is now at risk of losing its qualification for a General System of Preference Plus (GSP+) from the regional bloc. In a press briefing in Malacañang, Trade Secretary Alfredo
E. Pascual said the Philippines may be eventually barred from availing itself of EU-GSP+ once it achieves upper-middle income status. The GSP+ exempts several exported Philippines products from tariffs in the EU. “This was mentioned to me by the EU parliamentarians, See “GSP,” A2
DTI Secretary Alfredo Pascual on Tuesday announced that President Ferdinand R. Marcos Jr. has given his approval for the Philippine Export Development Plan 20232028. He also said the government is pushing for the revival of free-trade agreement talks with Europe, as the future of the country’s GSP+ privileges remains uncertain.
HE government will soon prov ide comprehensive industry and firm level interventions to help increase the country’s export volume under its new Philippine Export Development Plan (PEDP) 2023-2028. The Department of Trade and Industr y (DTI) reported that President Ferdinand R. Marcos Jr. has finally approved the PEDP during a sectoral meeting on Tuesday to help boost the country’s competitiveness in terms of merchandise exports through “development-centric” trade facilitation and right regulation. “We are a laggard in exports, particularly in the export of goods— those merchandise exports. But we are rather doing better and sometimes can be considered ahead of our neighboring countries in the export of services. Typical examples of these services are those offered by the BPOs [business process outsourcing], the IT-BPM [information technologybusiness process management] sector,” Trade Secretary Alfredo E. Pascual said in a press briefing. To help increase merchandise exports, the PEDP aims to help address industry production
REY BANIQUET/PNA
See “PEDP,” A2
PESO EXCHANGE RATES n US 56.1270 n JAPAN 0.4022 n UK 69.7939 n HK 7.1607 n CHINA 7.9042 n SINGAPORE 41.6064 n AUSTRALIA 37.1280 n EU 60.1345 n KOREA 0.0432 n SAUDI ARABIA 14.9672 Source:
BSP (6 June 2023)