NEDA cites effects of typhoons, restrictions on public transport

The rate of increase in consumer prices in November quickened to its fastest pace in nearly two years due to recent typhoons as well as government restrictions on public transport, the National Economic and Development Authority (NEDA) said.

The Philippine Statistics Authority (PSA) reported that the country’s headline inflation clocked in at 3.3 percent last month, highest since February 2019.

The latest figure is also faster than 2.5 percent in October and 1.3 percent in the same month last year.

The actual inflation is also beyond the 2.4 percent to 3.2 percent forecast range of the Bangko Sentral ng Pilipinas for the month.

Despite the uptick, the average inflation rate in the first 11 months stood at 2.6 percent, still well below the midpoint of the government’s full-year target of 2.0 percent to 4.0 percent.

Transport services, as well as agricultural products such as meat and vegetables, are the top contributors to November inflation.

Acting Socioeconomic Planning Secretary Karl Kendrick Chua said this is due to the restrictions on public transport, persistence of African Swine Fever, as well as damage and losses in crops following the onslaught of several typhoons and flooding last month.

Food inflation picked up further to 4.5 percent last month from 2.1 percent in October and -0.2 percent in the same month a year ago.

Prices of vegetables and meat increased year-on-year by 14.6 percent and 8.2 percent, respectively.

The Department of Agriculture estimated that typhoons “Ofel,” “Nika,” “Pepito,” “Quinta,” “Rolly,” and “Ulysses” brought P15.3 billion in damage and losses to the farm sector.

“Our experience with the recent typhoons has highlighted the need for long-term engineering interventions, reforestation, and coordinated flood management systems across different local government units (LGUs),” Chua said.

He also cited the need to intensify the distribution of climate-resilient technologies and other production support assistance to mitigate production loss in the agriculture sector.

The acting NEDA chief added that the Quick Response Fund can also be utilized to repair and rehabilitate production facilities and irrigation systems damaged by the recent typhoons.

Meanwhile, inflation for transport services has remained elevated in the last six months, as a result of social distancing directives and reduced passenger capacities in all modes of public transport.

Transport cost jumped 7.6 percent in November, a reversal of -2.4 percent in the same month last year, but slightly lower than 7.9 percent seen last October.

For this reason, Chua raised the need to revisit the public transport system guidelines and for LGUs and the Land Transportation Franchising and Regulatory Board to monitor and review prevailing and unwarranted fare increases in public transport.

He also reiterated his call to gradually reopen the economy and allow more public transport, while still reinforcing the “seven commandments” of safe public transportation.

“To help ease the burden on public transport operators and drivers who have been adversely affected by the lockdowns, the Department of Transportation (DOTr) may also consider waiving some regulatory fees,” Chua said.