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6.4% inflation is manageable and temporary, export group says

by admin   |   Posted on Wednesday, September 12th, 2018

The Philippine Exporters Confederation Inc. (PHILEXPORT) remains positive about the Philippine economy.

The group even downplayed the 6.4 percent inflation rate in August, noting that the country experienced higher inflation rate during former President Gloria Arroyo’s time when it hit 12.5 percent in 2008.

Philexport president Sergio Ortiz- Luis, Jr. is not alarmed by the rising prices of goods especially when they have identified the cause of the rise in inflation.

He cited the cost of food and services in the country as the leading contributor to the inflation hike.

“You must allow inflation rate to go up a little. Study says that 5% in an economy like ours should be something that is normal and 8% is even tolerable,” the Philexport chief said.

However, he emphasized that the food inflation is a more alarming cause of higher prices in the country as it indicates a problem with policy.

Business groups are calling on the administration to revisit certain policies of government agencies that oversee the production and distribution of basic commodities, particularly the Department of Agriculture.

“You have to remember na ang talagang umiiyak dito taong bayan…the items na talagang apektado food…and fuel,” the export leader said.

Meanwhile, the business sector welcomes the government’s bid to implement rice tarrification, which they believe will curb issues on rice stocks and prices. — Aiko Miguel