Editorial

Bracing for inflation…

Inflation rate in our country rose to 6.4 percent in August from 5.7 percent in July, the highest so far among other countries after nine years. The rate increase, according to the Philippine Statistics Authority, is driven by price increases in food and non-alcoholic beverages. While this is so, pegging of prices are higher than the present inflation rate. Gasoline prices have gone to P12 per liter since January when the Tax Reform for Acceleration and Inclusion 1 took effect with added excise taxes on fuel and other commodities. 

        Inflation rate, however, differs among regions, thus, affecting also commodity prices. In Mindanao, the Autonomous Region in Muslim Mindanao, considered the lowest in economic index, has the highest inflation rate at 8.1 percent. The rest: Region-9 (6.4%), Region-10 (6.1%), Region-11 (7.1%), Region-12 (7.9%), and Region 13 (4.8%), the latter with the lowest percentage.

        What would it be then? Is this normal when consumers are grumbling on commodity prices, including rice which run from P80 to P100 a kilo in some areas where the staple food is nil.  Our economic managers have to devise practical solutions to bring down rising prices. There is fear that inflation would still rise next year. There is a call in reversing the fuel excise tax to temper run-away prices. When fuel prices jack up, so do prices of commodities… we know that fuel price fluctuates in the world market.

        As voiced by Senator Nancy Binay, “the government should identify the key drivers and the range of internal and external factors that continue to have a material impact on the increase of prices: adding: “The high inflation rate would have a profound impact on the long-term anti-poverty programs if there was no intervention from the government.”

        Senator PanfiloLacsonvoiced of an impending food crisis following dwindling supply of staple food which should have been imported earlier.

        Is the TRAIN Law responsible for the high inflation rate as some analysts figure out? The TRAIN is supposed to increase revenues but then it heightened inflation. How could our government economic managers deflate the trend? We cannot just wait for the prices to get higher or getting out of control as Senator Joel Villanueva said.

        There is a call for economic managers to focus on this scary economic situation and come out with solutions before the poorest sector further suffer its pangs. Already, several households have their own “discarte” to face the spiraling cost of products and services. In our region folks, perhaps you can cost the prices of commodity by 7.9 percent at the crudest accounting.

        It is our pray that inflation rate is tamed. This one is an utmost priority to focus on.