By Ben Rosario Congressional leaders welcomed on Friday the inflation rate dive, saying that the “lower than expected” consumer price index indicates that the benefits of the rice tarrification law were starting to be felt. Albay Representative Joey Salceda (ALI VICOY/ MANILA BULLETIN) Deputy Speaker Conrado Estrella (ABONO Partylist) and Albay Rep. Joey Sarte-Salceda were elated over the recent disclosures that September inflation rate was registered at 0.9 percent, lower than the 1.9 percent from the prior month. However, Deputy Minority Leader and Bayan Muna Rep. Carlos Zarate doused cold water on the administration lawmaker’s optimism when he pointed out that the downward inflation trend “does not mean that the prices of basic goods are now lower.” “Truth to tell, it only means that there is a minimal increase in the prices of goods last month, but, the prices remain high since the banner 6.7 percent inflation rate last year," said Zarate. He added: "What consumers want to hear is the lowering of prices and not just the rate of inflation.” Salceda said he expects lower inflation rate for this month. “Inflation in October is likely to sub-1 percent at about 0.8 percent given high base of 6.7 percent in 2018,” said Salceda, chairman of the House Committee on Ways and Means who also acts as the chamber’s resident economist. “Nevertheless, lower than expected CPI  largely reflected the benefits of the rice tariffication law and its downward impact on retail prices of rice, the culprit in 2018 inflation spikes,” Salceda said. Yet , Salceda warned that inflation percentage will be higher in the last two months of 2020. “However, in November and December we expect inflation to move higher to 1.2 percent and 1.9 percent, respectively,” predicted Salceda. Estrella had also aired his optimism that the inflation rates will plunge a little deeper as consumers start to reap the benefits of the rice tarrification law. “The urgent job at hand is to immediately put in place measures that will lessen the impact of rice tarrification law to our farmers.  Together with the Department of Agriculture, we are doing this now,” said Estrella. The partylist solon said emergency cash assistance for affected rice farmers will be distributed within the month in provinces like Pangasinan. “Starting next week, we will visit small rice farmers, distributed  their cash assistance and explain to them the benefits and advantages of the rice tarrification law, which is far from what they are being made to believe in,” stated Estrella. Salceda noted that “upward price pressure from the oil speculation” triggered by the drone attacks in Saudi Arabia oil fields “has been curtailed. He explained that the increase in inflation rate was the result of the “incremental demand growth from A, the BSP action - the reduction in policy rates by cumulative 50bps to 4.25 percent, and the gradual lowering of reserve requirements this November by 100bps from 16 percent to 15 percent which released P110bn in to the system B. “ “Higher government spending from the catchup program to offset the five-month delay in the budget. All told, Philippine fundamentals are rock solid in the inflation front,” said Salceda. Read more: Cheaper rice further pulls down inflation