MANILA – Due to inflationary pressures, the inflation rate which recently recorded at 3.8 percent in February will not stay within the 2 to 4 percent target for long according to Ibon Foundation.
Executive director Sonny Africa said that as long as there are still present factors that can affect inflation in the country, the consistency in the downward trend of the inflation rate cannot be guaranteed.
“Habang may inflationary pressures pa tulad ng tax law at paghahaya ng overpricing sa local products, may recurring problem pa rin,” Africa said in his interview on “Balitanghali” Wednesday.
“We don’t actually think na tatagal siya lalo na tataas po ang global oil prices sa mga darating na buwan,” he also said.
Even with the low inflation rate in February, Africa noted that the prices of commodities are still higher compared to last year.
“Kung titignan natin yung presyo ng bigas, ng asukal, ng isda, ng liempo mula sa nakaraang taon, mas mahal pa rin siya ngayon kaysa sa nakaraang taon,” Africa said.
According to Finance assistant secretary Tony Lambino, the Rice Tariffication Law will be the biggest contributor in reaching the target inflation range in 2019.
But, Africa said that the newly approved Rice Tariffication Law, which allows private sector traders to import rice without limits, makes the price of rice more volatile.
“Mapapasok tayo sa sitwasyon na mas volatile ang presyo ng bigas at ang delikado dito ay ang pagbagsask ng local production dahil mas maraming bibilhin na imported rice yung mga traders natin,” he said.
The said law will also create Rice Competitiveness Enhancement Fund worth P10-billion, which will be given to local farmers for farm mechanization and seedlings.
But, Africa said that the P10-billion fund is not enough to support the local rice industry.
“Yung P10 billion na yan, ang layo doon sa $1 billion per year na binibigay ng Vietnam, $4 billion na binibigay ng Thailand. So, malayo doon sa halaga ng binibigay na suporta ng mga pinagkukunan natin ng bigas,” Africa said.
“Too late na siya kung baga yung panahon para palakasin ang sarili ay yung panahon na may proteksyon. Medyo too late na sya para mahabol ang ilang dekada ng kapabayaan sa pagpapalakas ng industriya ng bigas,” he added. (GMA News)
