PH inflation could hit 8% if Russia-Ukraine conflict drags on — Salceda

Albay Rep. Joey Salceda (file photo)

MANILA, Philippines — The Philippines’ inflation rate could shoot up to 8 percent especially if the conflict between Russia and Ukraine continues, economist and Albay Rep. Joey Salceda said Monday.                                                                                         

Salceda said the national government has to focus on ensuring food security and the protection of poor Filipinos as prices of commodities soar. 

“Puputok ‘yan (inflation) sa otso … I have my own model, tapos base last year was slow so I think it can shoot up to 8.1 [percent],” Salceda said in an interview with ABS-CBN News Channel about the inflation rate in the country. 

(Inflation rate could shoot up to eight percent.)

INQUIRER.net file photo

Russia-Ukraine conflict

“Depende ‘yan kung hindi titigil ang Ukraine at Russia, mukhang ayaw namang tumigil. Mukhang we will see an escalation especially with the [European Union] now coming together to really fight the war,” he added. 

(It depends on whether or not the Ukraine-Russia war will stop, but it looks like it will not. It seems like we will see an escalation, especially with the European Union now coming together to really fight the war.)

The inflation rate in the country in May reached a 42-month high of 5.4 percent, bringing the five-month average to 4.1 percent.

The five-month average is slightly higher than the government’s target of 2 to 4 percent. 

Looking ahead

Asked what the incoming administration of President-elect Ferdinand “Bongbong” Marcos Jr. could replicate from the outgoing administration of President Rodrigo Duterte to address inflation, Salceda said tariffs on “essential food” can be brought down. 

“Pero ngayon kasi 80 percent ng inflation is basically energy and transportation so definitely dilemma ‘yan (Right now, 80 percent of the inflation is basically energy and transportation so that’s a dilemma),” Salceda said. 

“Parang ang natural atake mo ay bakit hindi mo na lang tanggalin yung excise tax at VAT? But that’s P500 million… The right thing to do there is really is to focus on the poor,” he added. 

(The natural way to attack this is to remove excise tax and VAT. But that’s P500 million.)

gsg/abc