DOF sees 2022 inflation rate at around 5%

Budget Secretary Benjamin Diokno INQUIRER file photo

MANILA, Philippines — The Department of Finance (DOF) sees the country’s average annual inflation rate in 2022 at around five percent as inflation is expected to “remain elevated for the next few months.”

Finance Secretary Benjamin Diokno presented on Wednesday the inflation forecast, adding that cutting inflation cannot be done overnight.

The Philippine Statistics Authority (PSA) reported that the inflation rate in has June reached 6.1 percent.

“We estimate that inflation will remain elevated for the next few months so that the annual average inflation for this year will be in the neighborhood of five percent. It will be down to 4.2 percent next year and it will be back to our target range of two to four percent, it will be back to 3.3 percent by 2024,” Diokno told reporters in a Palace briefing on Wednesday.

“This is a problem faced by many countries. We cannot cut inflation overnight, it has to be gradual. And so that’s the forecast of the [Bangko Sentral ng Pilipinas],” he added.

Meanwhile, Diokno mentioned several measures that the Marcos administration plans to provide relief for Filipinos amid rising consumer prices.

“Inflation is driven mainly by the elevated price of oil. Now, we will continue the grant of fuel subsidy to the affected party, like the drivers, farmers, and the fisherfolks,” the DOF chief said.

READ: Bongbong Marcos eyes transport fuel aid expansion to include tricycle drivers

“The other measure is that we will continue the importation of products which are in short supply as what has been done before and of course, we will try to improve the transport and logistic sectors,” he added.

JPV/abc