Palace says eased inflation rate due to gradual reopening of economy

MANILA, Philippines — Malacañang has attributed the country’s reduced inflation rate to the gradual reopening of the economy, vowing to keep prices of basic goods stable despite the COVID-19 pandemic.

The country’s inflation went down to 2.4 percent in August from 2.7 percent in July, the Philippine Statistics Authority reported earlier.

“The Palace considers the easing of the August 2020 inflation to 2.4% a positive development. We credit this to the gradual re-opening of the economy, where we see a decrease in food prices,” Roque said Friday in a statement.

“Keeping the prices of basic commodities stable in this period of global health crisis and economic uncertainty remains our topmost priority,” he added.

PSA said the lower inflation in August was caused by the slower rate in the price increase of food and non-alcoholic beverages.

“We will therefore continue to monitor prices of basic goods and make sure there is unhampered flow in the movement and delivery of essential commodities to other places, notwithstanding the localized actions imposed in some areas,” Roque said.

Most parts of the Philippines have gradually shifted to a lenient lockdown or general community quarantine, allowing more businesses to reopen albeit at a limited capacity.

The Palace official added it was “encouraged” over the agriculture sector’s “resilience,” proving the effectiveness of the Duterte administration’s policies and programs for farmers and fisherfolks.

“We will sustain these programs to boost agricultural production in the long-term,” Roque said.

KGA