DOF Says That Addressing High Inflation Is a Top Priority

The Department of Finance (DOF) has mentioned that a top priority of the economic team of President Marcos is to tackle high inflation. This comes after prices reached a 14-year high last October.

DOF Secretary Benjamin Diokno has reassured that despite high consumer prices, the priority would be to bring down inflation.

“Addressing high inflation is the number one priority of the economic team,” said Sec Diokno.

“Although inflation is expected to remain elevated for the rest of the year with the impact of severe tropical storm Paeng on food supply and persistent global supply chain issues, the government will help ensure that inflation will be on a target-consistent path over the medium term with the implementation of direct measures to address supply shocks.”

Inflation went up to 7.7% in October from September’s 6.9%. The year-to-date average inflation is at 5.4%.

Higher prices of gas, transport fare increases, and higher commodity and food prices in light of past typhoons are the main factors for the high inflation rate for October.

The rapid increase in non-alcoholic beverages and food to 9.4% from a previous 7.4% in September was identified to be the main source of inflation in October.

“Demand-side dynamics have also partly placed upward pressure on inflation following increased economic activity,”  mentioned Sec Diokno.

The DOF says that the contribution to inflation by commodity group, gas, electricity, and other fuels had contributed the highest to inflation at 1.1 percentage points.

Source: Manila Bulletin