FINDING ANSWERS Former Senator
Atty. Joey Lina More than anything else, Filipinos are most bothered by the soaring prices of food and other basic goods. That inflation pushed by costlier food items, which account for around one third of total expenditures of many households, is especially worrisome was seen anew in Pulse Asia’s Ulat ng Bayan Survey released last week. “Amidst the continuing increase in the prices of basic goods, two-thirds of the country’s adult population (66 percent) consider the need to control inflation as the national issue that requires the immediate attention of the incumbent administration,” a Pulse Asia statement read. “This is the prevailing view in all geographic areas and socio-economic classes,” Pulse Asia said. The survey conducted last Sept. 17 to 21 showed a jump of nine percent from last June of those who viewed inflation as the foremost of the “urgent national concerns” among a total of 13 in a list. The same survey showed the Marcos administration had majority approval ratings on 11 of the 13 issues. The Pulse Asia results were released at around the same time the Philippine Statistics Authority reported that headline inflation last September rose to 6.9 percent – the highest level in four years – from 6.3 percent in August, which brought the average inflation rate from January to September this year to 5.1 percent. Also last week, a group of some of world’s most powerful oil producers known as OPEC+ announced their decision to reduce production by as much as two million barrels a day starting this November, triggering fuel prices hikes which, in turn, eventually leads to more inflation. Thus, the situation appears bleak with inflation being driven by external factors. Inflation has indeed become a worldwide phenomenon, mainly due to the raging Russia-Ukraine war that has disrupted the global supply chain and raised fuel prices. And with the US hiking interest rates to tame inflation and strengthen the dollar, resulting in the weakening of the Philippine peso, importing food items has become costlier. Thus, more inflation. As the war rages on with still no end in sight, many analysts see a continuing global inflation crisis. And inflation particularly on food prices would spell more suffering for developing countries like the Philippines. “Rising food prices have a greater impact on people in low- and middle-income countries since they spend a larger share of their income on food than people in high-income countries,” the World Bank said in a report, Rising Food Insecurity in 2022. The WB explained “the war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at historically high levels through the end of 2024 exacerbating food insecurity and inflation.” Thus, cushioning the impact of global inflation on our country is of paramount importance. While there seems to be no quick fix in sight to avert the WB’s bleak projection for the near future, our government is not entirely helpless in tackling “imported inflation” with urgency. Beyond the necessary actions to combat inflation like adjusting interest rates and other monetary policies by the Bangko Sentral ng Pilipinas, efforts by both national government and local government units are vital. I’ve often said that many solutions to national problems are local. Concerted efforts of both national agencies and LGUs would certainly go a long way in battling inflation. Focusing on increased food production and reducing costs on farm inputs would certainly be helpful. Resorting to alternatives like animal wastes as fertilizers would help soften the impact of high costs of imported fertilizers. Finding ways to enhance renewable energy and adopting more green energy solutions would help reduce our reliance on imported fuel. As I’ve said before, LGUs and the national government can do a lot to inspire and mobilize people towards increasing food production leading to lower food prices. Establishing and intensifying the Food Always In The Home (FAITH) program that I created in 1995 in Laguna when I was governor would help tremendously. Such program, eventually adopted by the National Nutrition Council, enabled people to produce clean nutritious food in their backyards, thereby reducing in half food costs. Indeed, the new Marcos administration has all the political capital it needs to mobilize the citizenry towards a whole-of-nation approach in controlling inflation – a gut issue of grave and urgent concern to millions of Filipinos struggling to cope with hard times. Email: [email protected]