Palace is focused on ‘Yolanda’-related inflation—Coloma

By: Kristine Angeli Sabillo - 11 years ago

Communications Secretary Herminio Coloma. INQUIRER FILE PHOTO

MANILA, Philippines—The Palace on Tuesday assured the public they’re actively monitoring the price situation in typhoon-hit areas and will prosecute those found to have violated the law.

The statement came after Economic Planning Secretary Arsenio Balisacan said the devastation wrought by Supertyphoon “Yolanda” pushed inflation in the country to a two-year high of 4.1 percent.

“Tinututukan po yan ng DTI [Department of Trade and Industry], ng Department of Agriculture [DA], at ng iba pang mga ahensiya ng pamahalaan, at gagawin po ang lahat para huwag nang tumaas pa etong inflation rate na ito (The DTI, DA and other agencies are focused on the situation and are working to prevent the inflation rate from further rising),” Communications Secretary Herminio Coloma said at a Palace press briefing.

The reported inflation hike came amid a prize freeze on basic commodities, which was imposed through the declaration of a state of national calamity.

“Almost all food items in the average consumer basket increased, which can be mainly attributed to the impact of Typhoon ‘Yolanda’ (international name: Haiyan),” Balisacan said in a report.

But Coloma said they will have to look at the other factors that may have caused the price increase.

“We have to recognize that certain market forces are also at work. We’ll study if there are supply shortages, either in terms of raw materials or in factor cost, like transportation or communication,” Coloma said in Filipino.

He said it is possible to bring supplies from other regions into calamity areas to normalize the supply and in turn to lower the prices.

Coloma said the government will ensure that the law is enforced.

“Pananagutin po iyong mga lumalabag (Those who violate the law will be punished),” he said, adding that it is now easier to monitor such cases because of technology.

He said the government’s economic program is focused on the inflation rate and the budget deficit as a percentage of the gross domestic product.

“If the inflation rate is too high the peso’s purchasing power is lessened. That is why [keeping the inflation rate stable] is one of the important economic objectives of the government,” Coloma said.