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.