October 7, 2020
The country’s overall inflation slightly eased to 2.3 percent in September 2020 from 2.4 percent in the preceding month, which brings the year-to-date inflation to 2.5 percent.
“Due to stable supply, free movement of goods, and recent structural reforms, inflation in September was well below the midpoint of the central bank target at 3 percent,” Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said.
He emphasized that landmark reforms, such as the Rice Tariffication Law (RTL) of 2019, enabled the country to withstand supply shocks that could have otherwise threatened overall price stability.
However, the onset of La Niña, the continued presence of African Swine Fever in the country, imposition of localized lockdowns, and supply chain bottlenecks could pose upside risks to the low inflation environment.
“Concerned government agencies and local government units also need to strengthen the implementation of its phytosanitary and biosecurity measures and intensify its meat inspection efforts. This is to suppress the spread of potentially contaminated meat products, as new cases of African Swine Fever and Avian Influenza are reported,” the NEDA chief said.
He said that the government could also explore and expand projects that will improve the country’s water management systems, distribute climate-resilient seed varieties, provide post-harvest facilities, and ensure business continuity and delivery of goods across the country, as these will all be important sectors to address the potentially adverse effects of these risks.
New waves of COVID-19 cases around the world and slower than expected economic recovery continue to put downward pressures on global oil prices. Despite this, Chua assured that the government is closely monitoring global price movements to remain ready to address any potential shocks.