NextGen Day

MANILA, Philippines — Executive Order (EO) No. 171 and the government’s gasoline subsidy scheme, according to the National Economic and Development Authority (NEDA), have aided in reducing the impact of global inflationary pressures.

According to the Philippine Statistics Authority (PSA), headline inflation jumped to 5.4 percent in May 2022 from 4.9 percent the previous month.

For the month, the inflation rate is expected to be between 5.0 to 5.8%, according to the Bangko Sentral ng Pilipinas (BSP).

Inflation so far this year has averaged 4.1 percent, slightly higher than the BSP’s goal range of 2.0 to 4.0 percent for 2022.

“The conflict between Russia and Ukraine has disrupted global supply chains and raised commodity prices, particularly for petroleum.” “We’ve seen how a single crisis may set us back,” Socioeconomic Planning Secretary Karl Kendrick Chua said in a statement. “The Duterte administration has undertaken both short- and long-term policies to enhance the resilience of our domestic economy against foreign shocks.”

The increase in headline inflation was fueled by faster inflation in both food and non-food commodity groupings.

Because of higher inflation rates for vegetables, seafood, and meat, food inflation increased to 5.2 percent in May from 4.0 percent in April.

Due to a lack of global supply, corn inflation remained high at 24.4 percent. Rice inflation, on the other hand, stayed constant and decelerated to 1.5 percent when the Rice Tariffication Law and EO No. 135, which diversified the country’s rice suppliers, were implemented.

Meanwhile, non-food inflation jumped to 5.6 percent in May from 5.4 percent in April, owing to higher transportation inflation as a result of higher global oil prices.

Due to fare restrictions, private transportation inflation increased to 47.9% from 44.4 percent, while public transportation inflation remained at 1.6 percent.

Household inflation for electricity, gas and other fuels remained strong, albeit at a slightly lower rate of 18.8% from 19.9%.

The government has upped the total budget for targeted subsidies to PHP6.1 billion to help soften the impact of higher fuel costs on the neediest.

Over 180,000 PUV drivers and operators have earned their PHP6,500 fuel subsidy through the Pantawid Pasada program as of June 1, 2022.

At the same time, more than 158,000 farmers and fishermen will receive a gasoline discount of PHP3,000.

President Rodrigo Duterte also issued EO No. 171 to change tariff rates for pork, corn, rice, and coal in order to promote the entry of more goods at reduced prices. This is one of the Economic Development Cluster’s primary proposals for tackling the inflationary impact of the Russia-Ukraine war.

The validity of EO 134 and 135, which reduced the most favored nation (MFN) tariff rates for the importation of pork and rice, is extended by EO No. 171.

Because corn accounts for more than half of the entire production cost of large-scale broiler and swine farms, the EO decreases MFN tariff rates for corn to 5% in-quota and 15% out-quota.

EO No. 171 also temporarily reduces the 7% MFN import duty rate on coal, which is an essential raw material in the generation of power, to help maintain or lower electricity rates.

“In the short term, these interim measures are likely to boost our food supply and reduce rising electrical expenses,” Chua said.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---