Gatchalian: 6.4% inflation rate cause for alarm
Sen. Sherwin Gatchalian. PHOTO from Office of Senator Sherwin Gatchalian
Senator Sherwin “Win” Gatchalian has warned that the increasing inflation rates, recorded at 6.4 percent for August, would severely impact poor Filipino families, especially as majority of the goods with surging prices are food products.
“The 6.4 percent inflation rate recorded in August – a nine-year high – is cause for alarm because of its potentially grave impact on poor and underprivileged Filipinos,” Gatchalian, chair of the Senate Committee on economic affairs, said in a statement on Wednesday.
“Once again, food inflation is the main culprit, with food prices soaring at a rate of 8.5% over the past month. This poses a serious threat to the food security of the bottom 30% of families in terms of income, who spend roughly P70 of every P100 they earn on food,” he explained.
According to Gatchalian, government should already consider bringing down prices as a top priority.
“I must also stress that, at this point, solving the inflation problem should be the government’s number one priority,” the senator said.
“It will take a strong and united government effort to slay the inflation monster that is rearing its ugly head at our economy and our people,” he added.
During an earlier press conference, Budget Secretary Benjamin Diokno said that the inflation rate for August—the highest since a 6.6 percent increase was recorded in March 2009 — will go down by the fourth quarter.
He also said that it will return to their target numbers by the next year.
READ: Inflation hits new 9-year high of 6.4% in August
However, Gatchalian believes that prices will continue to rise, and maybe even faster than expected.
“Additionally, the month-on-month inflation rates for the year indicate that inflation is steadily accelerating. This means that prices will continue to rise, and faster than ever, unless we take decisive action to rein in prices,” he claimed.
He also reiterated his proposal for government to create a task force that would address problems brought inflation.
“I am calling once more on the Duterte administration to immediately organize and convene a counter-inflation task force, with the aim of implementing a comprehensive whole-of-government strategy to curb inflation and shield the poor from the increasing burden of rising prices,” Gatchalian said. /je
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