Increasing agricultural prices is the main driver of the current inflation of the Philippines. The average inflation of the country is 6.4% recorded by the Banko Sentral ng Pilipinas. Moreover, there are regions in the Philippines have higher inflation rate.
The onslaught brought by Typhoon Ompong has been forecast to contribute to another increase in inflation. Crops in Northern Luzon were devasted during the siege. The price of millled rice increased by 20.26 % relative to the price same time as last year. The current price of rice is at Php 45.71 per kilo. However, the government has several action to address the ongoing issues. Last September 21, President Duterte ordered additional importation of rice beyond the 805,200 metric tons, more than the usual importation quota.
Respectively, he also instructed to provide 230,000 metric tons of rice stocks in the local market from the warehouses of National Food Authority (NFA).
He also added to reduce and remove importation tariff to lessen price hikes so the country can attain basic agricultural commodities. For the concern of fish, he informed to import ‘adequate amount’ of fish to avoid shortage of supply.
On the other, Bangko Sentral made its effort in creating interest rate to increase in order to reduce the demand of consumers and lessen exchange rate pressures through setting a 50 basis points. This means that the Philippines interest rate increased, a loan growth of 4% from 3%.
Despite of the present economy, the economic growth can be boosted by the accomplished infrastructures.