Diokno ‘trying to mislead’ public over lower inflation in December—Bayan Muna

MANILA, Philippines — Budget Chief Benjamin Diokno is allegedly “trying to mislead the people with the supposed lowering of inflation in December and the average inflation for 2018.”

READ: Inflation downtrend continues in December

This was according to Bayan Muna Chairman Neri Colmenares and Bayan Muna Rep. Carlos Isagani Zarate.

“Ang hindi sinasabi ni Sec. Diokno ay ang 5.2% na inflation average para sa 2018 ay mahigit doble ng kanilang target para dapat na 2-4% lamang na inflation,” Colmenares said in a statement on Sunday.

“Ibig sabihin ay naging matindi talaga ang epekto ng TRAIN (Tax Reform for Acceleration and Inclusion) law sa pagtaas ng presyo ng mga bilihin,” he added.

He cited a study by IBON Foundation, an independent think tank, which showed that the 2018 average inflation rate of 5.2% is the highest in a decade.

“The reported annual average inflation rate rose to 5.2% in 2018 from 2.9% in 2017 and 1.6% in 2016. The inflation rate in 2008 was 8.2%,” he added.

Colmenares claimed that Diokno “is also not telling us about an impending economic slowdown.”

“IBON Foundation has noted that the economic growth target for 2018 has already been adjusted downwards from 7-8% to 6.5-6.9 percent,” he said.

“The gross domestic product growth rate already slowed to 6.3% in the first three quarters of 2018 from 6.7% in 2017 and 6.9% in 2016,” he added.

Colmenares further said that the lower inflation rate in December should be largely credited to the lowered price of oil in the world market.

“Dapat ding tignan na hindi ang mga sinasabing ginawa ng economic managers ang nagpababa nang inflation noong Disyembre. Ang pinakamalaking nag-ambag dito ay ang pagbaba ng presyo ng langis sa world market dahil sa pagdami ng supply nito nang huling 3 buwan ng 2018,” he said.

“Ngayon ay napipinto na namang magtaas ang presyo ng langis dahil sa pagbabawas ng produksyon nito at pagtaas muli ng demand,” he added.

He also noted that there is indeed inflationary effects with the implementation of the TRAIN law.

“Hindi totoo ang sinasabi ng mga economic managers tulad ni Diokno na hindi inflationary ang TRAIN law at pagtaas ng mga excise taxes,” Colmenares said.

READ: Inflation hits new 9-year high of 6.4% in August

He said that in September 2018, the inflation rate rose to 6.7 percent while in August, the country’s inflation was at 6.4 percent.

READ: Inflation hits new over 9-year high of 6.7% in September on elevated food prices

Colmenares noted that in July 2018, the inflation rate of 5.7 percent was the highest in over nine years and above market estimates of 5.5 percent while in June, the 5.2 percent inflation rate was the highest in more than six years and above market estimates of 4.8 percent.

He also noted that the recorded inflation rates in the months of January to May 2018 has either been above market expectations or the highest in over six years.

“Makikita dito na nagsimulang pumalo ang inflation mula ng ipatupad ang TRAIN law noong isang taon pero ngayon magmumula ito sa mas mataas na lebel na 5.1% at mas malaki ang idinagdag na excise tax ngayon kaya mas malaki din ang pagtaas ng mga bilihin,” Colmenares said.

“It is imperative therefore for the Supreme Court to now decide on our case and declare the TRAIN law unconstitutional so as to eliminate a scourge against Filipino consumers and start the new year right,” he added.

READ: Militant lawmakers ask SC to stop TRAIN

Meanwhile, Zarate said that the lower inflation rate in December is not indicative of the decline on the prices of basic commodities.

“Truth to tell, the supposed [declaration] of inflation from November (6%) to December (5.1%) did not mean that prices of basic goods are already going down, as in fact these prices are still high until now,” Zarate said.

Zarate also took a hit at the implementation of the second round of excise tax increases, citing that this may trigger “more and higher price shocks this year.”

“With the implementation of the second tranche of excise tax increases because of the TRAIN law, consumers should prepare for more and higher price shocks this year,” he said.

“In fact some oil stations are already jacking up their prices even when the Department of Energy announced that the oil price increases should be by the second week of January,” he added. /je