Finance Secretary Ralph G. Recto said that inflation is expected to remain within the target band of two percent to four percent this year following its contraction in June.
Recto said that implementing whole-of-government interventions, such as cash grants and tariff rate cuts, will ensure that the purchasing power of every Filipino is protected.
“We expect inflation to fall within our two percent to four percent target this year, especially after the government has taken decisive and data-driven steps to control the rising price of rice. This will help alleviate the burden of high rice prices that disproportionately affect the poor and vulnerable households,” he said.
June inflation print was recorded at 3.7 percent, down from 3.9 percent in May, and is significantly lower than the median estimate of 3.9 percent by private sector analysts for the month.
Despite this, food inflation slightly increased to 6.5 percent in June from 6.1 percent in May due to growth in meat and vegetable prices.
However, Recto said that Executive Order No. 62, which mandates a 15 percent rice tariff cut until 2028, will lower rice prices by 10 percent.
This will be coupled with the government’s P29 per kilo rice program for poor families and other vulnerable groups and P9.23 billion cash assistance to 1.2 million farmers and fisherfolk beneficiaries.
The Department of Social Welfare and Development also provided cash assistance totaling P1.37 billion to farmers and fisherfolk as part of the Presidential Assistance to Farmers, Fisherfolks, and their Families.
On the other hand, the finance chief stated that the Bureau of Customs will intensify measures to prevent undervaluation, ensure the correct duties or taxes on rice imports, and expedite and prioritize the unloading of imported agricultural products.
Meanwhile, an exemption from toll rate hikes for trucks transporting agricultural goods was implemented to prevent the second-round effects of toll rate increases on food inflation and ensure that food prices are kept stable for consumers.
Recto also said that fuel subsidies amounting to P2.5 billion will be allocated for the drivers of jeepneys, taxis, motorcycle delivery services, and tricycles. Some P510.4 million will go to fishermen and P469.0 million to farmers.
In addition, the Department of Budget and Management will release about P27 billion to pay eligible healthcare and non-healthcare workers who served during the COVID-19 pandemic to help cope with inflation.
“We will not be complacent in managing inflation as it is the topmost priority of this administration. Rest assured, the government will remain steadfast in coming up with data-driven policies and interventions for the benefit of the greater population,” Recto said.