NEDA proposes 5 ways to ease high inflation

TACLOBAN CITY, Aug. 14 -- The National Economic and Development Authority (NEDA) in Eastern Visayas has recommended five interventions to mitigate the impact of high inflation.

Citing reports from the Philippine Statistics Authority, NEDA Regional Director Bonifacio Uy said inflation rate peaked in June 2018 at 6.3 percent, the highest so far this year.

It declined to 5.9 percent in July, but still 2.7 percent higher compared to the same period last year.

Uy said in a mobile phone interview Tuesday that some measures should be done to ease inflation or the percentage rate of change in prices level over time such as subsidies, price monitoring, wage order compliance, rice tariffication, and use of alternative fuel source.

“The Department of Social Welfare and Development and Department of Energy to fast-track the implementation of the unconditional cash transfer to the poorest 50 percent of households and the fuel discounts for transports fare hike, respectively,” the NEDA official said.

The official also urged the Department of Trade and Industry and Department of Agriculture to conduct close price monitoring to ensure that traders are compliant to the suggested retail price.

“The Department of Labor and Employment should ensure compliance of establishments with the recently approved new minimum wage, as prescribed in new wage order to ease the burden brought about by the higher prices of basic goods and services,” Uy added.

The wage order issued recently had set a PHP10 to PHP30 increase in the daily pay of minimum wage earners.

The NEDA regional chief said the Agricultural Tariffication Act pushed by President Rodrigo Duterte that will lift quantitative restrictions on rice will significantly reduce its retail price by between PHP4 to PHP7 per kilogram.

“Likewise, it mandates to restructure the NFA to focus on buffer stocking to meet emergencies instead of import monopoly and trading functions, and promote productivity-enhancing measures,” he explained.

These measures include efficient post-harvest processes, transport and logistics, increased access to innovative technologies, and credit programs.

The official also suggested trade with other countries with cheaper oil and petroleum products, and not only with members of the Organization of the Petroleum Exporting Countries.

Last June, Eastern Visayas ranked fifth nationwide with the highest monthly inflation.

All provinces in the region, except Biliran recorded inflation hikes. Northern Samar topped at 7.8 percent, followed by Samar at 7.7 percent, and Eastern Samar at 7.5 percent. (SQM/PNA)