BusinessMirror A broader look at today’s business
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n Wednesday, September 6, 2023 Vol. 18 No. 324
AUG INFLATION SWELLS TO 5.3% ON PRICE SPIKES
P25.00 nationwide | 2 sections 26 pages | 7 DAYS A WEEK
FREEDOM TOUR The municipality of Kalayaan in Palawan offers the Kalayaan Fish and Dive Expedition, which promises a thrilling sevenday journey across four enchanting islands: Pag-asa, Likas, Lawak and Patag, islands claimed by the Philippines in the West Philippine Sea. Story in Second Front Page, A18, “Palawan promotes WPS adventure tour.” PHOTOS BY KEN HUPANDA/KALAYAAN TOURISM PROMOTIONS AND DEVELOPMENT PROGRAM
BSP flags continuing risks to financial PHL system
By Cai U. Ordinario
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@caiordinario
UCCESSIVE typhoons have caused commodity prices to surge in August with vegetables like tomatoes and the country’s staple, rice, leading the charge to increase inflation to 5.3 percent, according to the Philippine Statistics Authority (PSA).
The poorest Filipinos experienced an even higher rate of inflation at 5.6 percent as food inflation for the bottom 30-percent income households at the national level moved at a faster pace of 7.7
percent in August 2023 from 6.1 percent in Ju ly 2023 a nd 7.1 percent in Aug ust 2022. However, the Bangko Sentral See “inflation,” A2
Pinoys top Asean arrivals, drawing Japan’s ‘arigato’ By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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ILIPINOS are among the top visitors to Japan as of July this year, earning the earnest gratefulness of its Ambassador in Manila, Koshikawa Kazuhiko. Citing data from the Japan National Tourism Organization (JNTO), Kazuhiko posted on X
(formerly Twitter): “The Philippines is now the top Asean country for tourist arrivals in Japan. From 37,771 visitors from the Philippines in July 2019, we hosted 51,700 in July 2023—a 36.9-percent year-on-year increase! A big ‘arigatou gozaimasu! to all our Filipino visitors!” Following the Philippines was Thailand with 49,600 visitors;
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PRESIDENT Ferdinand Marcos Jr. attends the plenary session at the Asean Summit in Jakarta, Indonesia, Tuesday, September 5, 2023. In the background, the seat reserved for the leader of Myanmar remains vacant. Story on A2. WILLY KURNIAWAN/POOL PHOTO VIA
HE full impact of the increase in market rates “may not have yet run its full course” and efforts must be exerted to strengthen the financial system to absorb risks that come with it, according to the Bangko Sentral ng Pilipinas (BSP). BSP Governor Eli M. Remolona Jr., the new chair of the Financial Stability Coordination Council (FSCC), said risks loom despite the recent strength of the economy.
The FSCC recently approved a range of actions to enhance the resilience of the country’s financial system. These include communication to the capital and contingent markets and putting in place the right tools and better data to preemptively manage possible contagion risks. “While the high-level indicators are notable, there are many See “BSP,” A2
NEDA EYES CALIBRATED CUTS IN RICE TARIFFS TO EASE PRICES
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HE government may implement a calibrated reduction in rice tariffs to reduce the price of imported rice, according to the National Economic and Development Authority (Neda). In a statement on Tuesday, Socioeconomic Planning Secretary Arsenio M. Balisacan called for a review of existing rice tariffs to help lower the price of the staple. Neda said the review of the existing tariff levels on rice can help lower the cost of the commodity while considering the impact of this intervention on local producers. “To partially counterbalance the rise in global prices and alleviate the impact on consumers and households, we may implement a temporary and calibrated reduction in tariffs,” Balisacan said.
This is part of a slew of measures to make food more accessible to consumers. Neda assured the public that the government will strengthen its measures to ensure food security, protect consumers, and provide assistance to farmers. It said the expected reduction in rice production due to El Niño and the export ban recently imposed by major rice exporters such as India and Myanmar led to higher international rice prices. Moreover, the alleged hoarding incidents, artificial shortage, and speculative business decisions of market players may have put further upward pressure on the domestic retail price of rice, it added. Balisacan stressed the importance of See “Neda,” A2
See “Arigato,” A2
PESO EXCHANGE RATES n US 56.5690 n JAPAN 0.3863 n UK 71.4523 n HK 7.2205 n CHINA 7.7753 n SINGAPORE 41.7453 n AUSTRALIA 36.5549 n EU 61.0719 n KOREA 0.0429 n SAUDI ARABIA 15.0811 Source:
BSP (5 September 2023)