Palace Press Officer and Communications Undersecretary Claire Castro (MANILA BULLETIN FILE PHOTO)
While Malacañang was happy over the easing of inflation rate in the country, it recognized that political noise can indeed affect the economy.
The country’s inflation rate slowed to 1.5 percent in November, easing from 1.7 percent in October and 2.5 percent in the same month last year, largely due to lower food prices, according to the Philippine Statistics Authority (PSA).
"Maganda ang ipinapakita na pagbaba ng inflation rate dahil nga sabi natin hindi maiiwasan because of the political noise na talaga namang maaapektuhan ang ating ekonomiya (The decline in the inflation rate is a good sign because, as we have said, it’s unavoidable that the political noise will affect our economy)," Palace Press Officer and Communications Undersecretary Claire Castro said in a briefing on Friday, Dec. 5.
"At kapag naman po ito ay natapos na at naipakita naman ng Pangulo kung ano ang reason kung bakit kailangan magkaroon ng pag-iimbestiga, tingin natin mas lalong magtitiwala ang taumbayan sa Pangulo (And once this issue is resolved and the President is able to show the reason why an investigation is necessary, we believe the public will have even greater trust in him)," Castro added.
The Palace official underscored that the President's decision may not be popular, given the possibility of his own administration being directly affected, he chose to initiate an anti-corruption effort even at the expense of the economy.
"Sabi nga natin may mga pagkakataon hindi siguro popular ang iyong desisyon dahil makakaapekto mismo ito sa iyong administrasyon pero anong pipiliin mo popular na desisyon or right decision? So, sa Pangulo, ito iyong tinatawag nating right decision. Kahit ano pang mangyari, maapektuhan man pansamantala ang ating ekonomiya, ang ating taumbayan basta dapat maituwid ang tama (As we’ve also said, there are times when a decision may not be popular because it can directly affect your own administration. But what will you choose—a popular decision or the right decision? For the President, this is what we call the right decision. Whatever happens, even if our economy or our people are temporarily affected, what’s important is that what is right is corrected)," Castro said.
Castro also acknowledged that many ordinary citizens may not understand how the economy works, so she encouraged them to trust the records instead.
"Maraming mga tao malamang na hindi maniniwala dahil hindi naman sila ganoon ka-aware kung papaano tumatakbo ang ekonomiya. Marami talagang ordinaryong tao, mga simpleng tao minsan na ang ganitong mga masyadong teknikal ay talaga namang hindi maintindihan. Pero saan po ba tayo maniniwala hindi po ba sa records (Many people will probably not believe it because they are not that aware of how the economy works. There are really many ordinary people, simple people, who sometimes cannot understand things that are too technical. But where should we place our trust—shouldn’t it be in the records)?" Castro said.
She said this when she was sought for a comment on social media users who are hesitant to believe the recent inflation rate.
Stronger PH economy ahead
Executive Secretary Ralph Recto emphasized that Filipinos should expect a better and stronger Philippine economy ahead as the Marcos administration keeps inflation firmly under control.
He stressed that the administration's decisive good governance measures boost investor confidence in the country.
“Better days are coming. Makakaasa po ang bawat Pilipino ng mas malakas at mas matatag na ekonomiya sa mga darating na buwan dahil sa tiwala at mas tapat na pamamahala (Filipinos can expect a stronger economy in the coming months because of the trust and more honest governance). We will make a strong economic comeback in 2026,” Recto said in a statement.
According to the Executive Secretary, lower prices, combined with a strong labor market, are expected to boost domestic demand, drive consumption, and support the Philippines’ above-average growth relative to its regional peers.
With inflation easing, the Bangko Sentral ng Pilipinas (BSP) now has more room to adjust policy rates, which could further stimulate household spending and economic activity, Recto said.
Recto added that opportunities for investments also remain robust as the economic team continues to clear bottlenecks to attract more private sector participation. These include the temporary suspension of all field audits and related operations of the Bureau of Internal Revenue (BIR) in response to taxpayers’ concerns on Letters of Authority and Mission Orders.