PH inflation climbs to 4.4%

Transcript

00:00In developments that surprised no one, overall our headline inflation for the month just passed

00:054.4 percent, no thanks to upticks in the cost of power, produce, cooking gas and fuel that

00:11totally swamped and negated the cutback in rice prices. Still Finance Chief Ralph Recto is pretty

00:17confident prices will stabilize going forward as our Soojin Kim elaborates in this story.

00:22Headline inflation climbed to 4.4 percent in July, the highest recorded inflation rate this year.

00:32Still Department of Finance Secretary Ralph Recto says this is within the government's target band

00:37of three to four percent for the year. Secretary Recto assures the public the uptick in the

00:43inflation rate this July is likely a one-time thing and is expected to temper and fall within

00:49target for the rest of the year as government interventions take full effect. The uptick was

00:53primarily driven by the rising prices in housing, water, electricity, gas and other fuels. Notably

01:00the slower drop in electricity prices settling at negative 5.4 percent inflation coupled with

01:07the faster increase in prices of LPG. We expected that because the Meralco rates adjusted in July.

01:16Although to mitigate effects of the uptick, the Energy Regulatory Commission ordered a staggered

01:29implementation of charges. The 4.4 percent acceleration of inflation was also largely

01:36due to the faster uptick in food and non-alcoholic beverages, particularly chicken, bananas and corn.

01:42Overall five commodities had major contributions to inflation.

02:04Slowdown in inflation was also noted in other food items including rice.

02:09This following the cut on import tariffs under executive order number 62. In the coming months,

02:21additionally sugar and confectionery products, fish and other seafood particularly round scad

02:27and oils and fats. Meanwhile the government remains firm in its efforts to ensure food security.

02:34In fact, the Department of Agriculture is providing 510 million pesos as fuel subsidy

02:39to livestock, crop and poultry farmers. About 160,000 farmers will benefit from this 3,000

02:46peso fuel assistance. The House of Representatives is confident inflation will stabilize moving

02:52forward. House Deputy Speaker David Suarez assures there will be enough funds for social amelioration

02:58programs this budget season. House Deputy Majority Leader Migs Nograles also stands in agreement

03:05emphasizing programs such as the Rice for All are expected to aid in this effort.

03:10Soojin Kim from the National TV Network for the New and Better Philippines.