A male shopper keeps an eye on his amount due at a grocery in Quezon City. —FILE PHOTO
MANILA, Philippines — The lower inflation rate registered in June — at 3.7 percent — is proof that the administration’s economic policies have been effective, House of Representatives Speaker Ferdinand Martin Romualdez said on Friday.
In a statement, Romualdez said that the next target of the House and President Ferdinand Marcos Jr.’s administration is to lower electricity rates and rice prices so that inflation would see a decline.
“This means that inflation, which measures the rate of increase in the prices of goods and services, has been effectively controlled by the administration’s strategic economic policies,” Romualdez said.
“We will work to further reduce electricity rates and rice prices. Accomplishing that will surely lead to a further moderation of inflation. Titingnan natin ang posibleng amendments sa EPIRA (Electric Power Industry Reform Act of 2001) para maibaba natin yung presyo ng kuryente, para abot kaya ng lahat ‘yung sa tamang presyo,” he added.
(We would look at the possible amendments to the EPIRA so that we can lower the price of electricity, so that everybody can afford it.)
Earlier, the Philippine Statistics Authority said that headline inflation rates for June were lower than the 3.9 percent recorded in May — and the 5.4 percent recorded in June 2023.
The June 2024 inflation rate fell within the 3.4 percent to 4.2 percent forecast of the Bangko Sentral ng Pilipinas (BSP) for the month.
READ: Inflation slows to 3.7 percent in June — PSA
Romualdez said they would try to finish approving the EPIRA before Congress adjourns its session for the Christmas break.
Proposed EPIRA amendments were added to the latest list of Legislative Executive Development Advisory Council (Ledac) priority bills.
“So medyo kumplikado yan kasi malaki itong batas at we will handle it by sections pero kayang kaya natin tapusin ‘yan before siguro the Christmas break,” he added.
(That’s quite complicated because this is a big law and we will handle it in sections but I think we can finish these before the Christmas break.)
“We want to know what is the problem with the law, why the law that was supposed to streamline the energy sector has unfortunately brought up electricity rates. We will call all stakeholders – power producers and distributors, the transmission company, and most importantly the consumers represented by consumer groups,” he said.
READ: House assures to pass 3 remaining Ledac bills before 19th Congress ends
Albay 2nd District Rep. Joey Salceda, who is an economist by profession, said that the country can do better despite the lower inflation rate.
One factor that can contribute to the decrease of prices, Salceda said, is President Marcos’ move to lower tariffs for basic commodities being imported into the country.
“Inflation is under control, but we can do better. As usual, it’s still about rice, but we are looking more at year-on-year effects now, rather than a continuing momentum of price increases. In other words, it’s not getting worse. It was 3.9 percent last month,” he said.
“That said, I expect PBBM’s measures to reduce tariffs on rice and boost agricultural production will yield their results in the figures for next month. Hopefully, El Nino’s impact on fuel, water, and electricity prices will also dissipate as the rains begin,” he added.
READ: Marcos formalizes rice tariff cut via EO 62
Regarding rice, Romualdez said that the lower rice inflation shows that their goal of lowering prices to around P42 to P46 per kilogram is attainable.
“P42 to 45 per kilo is achievable,” he said. “An increase in the harvest of our farmers will lead to lower prices.
“These factors have collectively contributed to rising inflation rates worldwide. However, through proactive measures, the Philippine government has successfully navigated these challenges,” he explained.
Romualdez, however, also warned that the government must stay alert to avoid surges in prices.
“By keeping inflation under control, we have safeguarded the purchasing power of every Filipino. This achievement is not just a testament to the administration’s competence but also a promise of continued prosperity and stability for our nation,” he said.
“We must remain proactive and resilient, ensuring our economic policies evolve with the changing global dynamics. The road ahead may present new challenges, but with the same dedication and strategic approach, we will continue to thrive,” he added.