Government Measures To Mitigate Inflation

To help further reduce the upward pressures on the price of rice, President Marcos, Jr. issued a directive on the implementation of various measures to ensure the affordability of rice prices and to protect consumers after the lifting of the price ceiling.

“The IAC-IMO remains committed to the continued monitoring of developments in food and non-food inflation, especially on emerging supply shocks in the market, which allows for the timely formulation of relevant policy recommendations to mitigate inflationary pressures,” Department of Finance Secretary Benjamin Diokno said. I Photo: Department of Finance

The government will continue to implement a package of measures to address non-competitive market behavior to help ensure that rice and vegetable inflation will further decelerate for the rest of the year while also supporting farmers and protecting the vulnerable.

Efforts on warehouse investigations and forfeiture procedures, the filing of charges against market players on alleged reports of anti-competitive practices, and strict price monitoring of imported rice in the logistics chain are being doubled by the government to ensure that the lowered tariff rates do not translate to higher profit margins for importers, traders, and middlemen.

The government will also intensify the utilization of Rice Competitiveness Enhancement Fund (RCEF) programs such as farm mechanization, seed development, propagation, and promotion, credit assistance, and extension services to improve the productivity of rice farmers, reduce production costs, and link them to the value chain.

Meanwhile, the national government continues to undertake measures to mitigate non-food inflation across several fronts, namely on demand and supply management measures for energy and water; careful review of wage and fare hike petitions; and monitoring of the suspension of pass-through fees for delivery trucks as enforced under Executive Order No. 41.

The government also aims to complete the provision of financial assistance to the vulnerable sectors through its Targeted Cash Transfer (TCT) Program aimed at assisting the most vulnerable families; the Pantawid Pasada Program for drivers and operators of various modes of public transportation and delivery services; and its fuel subsidy program for farmers and fisherfolk following the lifting of the election ban spending.

“This ensures the protection of the purchasing power of the most vulnerable families and the continued delivery of essential services such as public transportation and agricultural activities,” Department of Finance Secretary Benjamin Diokno said.

To help mitigate oil inflation, the government aims to issue guidelines to revise the implementation of the ethanol blend for gasoline. Increasing the percentage of ethanol in the mixture could help decrease the cost of gasoline.

Additionally, the DOF shall support proposals to amend the 2024 General Appropriations Act (GAA) provision on fuel subsidies for the transport sector, which shall enable the government to enact measures in a more timely manner.

To help mitigate the second-round effects of toll rate hikes on food inflation, the government is also pushing for the implementation of toll rate hike exemptions for delivery trucks catering to agricultural products.

“The IAC-IMO remains committed to the continued monitoring of developments in food and non-food inflation, especially on emerging supply shocks in the market, which allows for the timely formulation of relevant policy recommendations to mitigate inflationary pressures,” Secretary Diokno said.

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