National Economic and Development Authority (NEDA) Affirms Government’s Commitment to Mitigate Inflation Impact and Support Vulnerable Sectors
The National Economic and Development Authority (NEDA) assures the public that the government remains steadfast in supporting the most vulnerable sectors amidst the recent uptick in inflation, reaching 6.1 percent in September 2023, as reported by the Philippine Statistics Authority (PSA). This rise, up from 5.3 percent in August, brings the year-to-date inflation to 6.6 percent.
The increase is predominantly attributed to higher food inflation, particularly in rice (17.9% from 8.7%), meat (1.3% from -0.1%), fruits (11.6% from 9.6%), and corn (1.6% from 0.9%). In response to these challenges, NEDA Secretary Arsenio M. Balisacan affirms, “The government is committed to providing targeted assistance to affected vulnerable segments of the population while food prices remain elevated.”
To address the impact on low-income households, the Department of Social Welfare and Development (DSWD) launched the country’s first digital Food Stamp Program on September 29, 2023. This program, designed to combat food poverty and malnutrition, provides monthly meal augmentation worth PHP 3,000 to families classified as ‘food poor’ by the PSA, along with pregnant and nursing mothers.
Additionally, the Land Transportation Franchising and Regulatory Board has provided fuel subsidies to 74,089 public utility vehicles as of September 27, 2023. The DSWD is set to distribute a PHP10,000 cash subsidy to 78,000 farmers in the Pantawid Pamilyang Pilipino Program (4Ps), with rice farmers receiving an additional PHP 5,000 to support productivity amid increasing production costs.
Recognizing the crucial role of farmers, the National Food Authority Council raised the buying price for palay (unhusked rice) on September 18, 2023. This increase, from PHP 19.00 to PHP 23.00 for dry palay and PHP 16.00 to PHP 19.00 for wet palay, aims to provide Filipino farmers with higher income.
Secretary Balisacan emphasizes that the government, through the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO), is vigilantly monitoring the demand-and-supply situation of key commodities. “We are closely monitoring both local and global markets in terms of price movement, as they may be affected by the availability of supply or disruptions in the supply chain.”
In response to the recommendations of the IAC-IMO during its meeting on October 3, 2023, President Ferdinand R. Marcos, Jr. issued EO No. 41. This executive order prohibits the collection of pass-through fees on national roads and urges local government units to suspend the collection of fees from vehicles transporting goods, thereby aiming to ensure efficient transportation and reduce costs of agricultural products.
Furthermore, considering global factors such as El Niño and rice export bans, Secretary Balisacan notes that the government may revisit the proposal to temporarily lower tariffs on rice, irrespective of origin, to stabilize local prices if needed.
“While implementing short-term measures to ease the negative effects of inflation, it is imperative that we also address our long-term food supply issues by providing support for our local farmers to boost their productivity and resilience. These include investing in irrigation, modern high-yielding varieties, pest control, and logistics,” concluded Secretary Balisacan.
About NEDA:
The National Economic and Development Authority (NEDA) is the premier socioeconomic planning body in the Philippines, responsible for formulating policies and programs to promote sustainable economic growth and development. NEDA envisions a resilient and prosperous Filipino society, guided by evidence-based and inclusive planning.
