TWO House leaders have joined Filipinos in welcoming the good news of lower inflation or the cost of basic commodities.
Recent reports said September inflation rate was registered at 0.9 percent, lower than the 1.9 percent from the prior month.
Deputy Speaker and Abono Party-list Rep. Conrado Estrella and Albay Rep. Joey Salceda were elated over the recent disclosures saying it could be attributed to Rice Tarrifciation Law which provides more supplies of rice at cheaper price.
Estrella said he is optimistic that the inflation rates will plunge a little deeper as consumers start to reap the benefits of the rice tarrification law.
“The urgent job at hand is to immediately put in place measures that will lessen the impact of rice tarrification law to our farmers. Together with the Department of Agriculture, we are doing this now,” Estrella said.
For his part, Salceda said he also expects lower inflation rate for this month.
“Inflation in October is likely to sub-1 percent at about 0.8 percent given high base of 6.7% in 2018,” noted Salceda, chairman of the House Committee on Ways and Means.
“Nevertheless, lower than expected CPI largely reflected the benefits of the rice tariffication law and its downward impact on retail prices of rice, the culprit in 2018 inflation spikes,” he added.
But Salceda warned that inflation percentage will be higher in the last two months of the year.
“In November and December we expect inflation to move highr to 1.2 percent and 1.9 percent respectively,” Salceda said.
He added that the increase in inflation rate is the result of the “incremental demand growth from A. the BSP action -- the reduction in policy rates by cumulative 50bps to 4.25 percent and the gradual lowering or reserve requirements this November by 100bps from 16 percent to 15 percent which released P110 billion to the system.