DA, DOTr need to facilitate supply movements – DOF – Manila Bulletin

The Department of Finance (DOF) is urging the Department of Agriculture and the Department of Transportation (DOTr) to facilitate movements of food supplies to ensure rapid price normalization.

Following the rebound in inflation, Undersecretary of Finance Gil S. Beltran said that priority should be given to ensuring efficient movements in the food supply to reduce the rate of increase in consumer prices in the coming months.

In November, headline inflation registered 3.3 percent, the highest since February last year and beyond the forecast range of 2.4 to 3.2 percent for the Bangko Sentral ng Pilipinas.

Beltran said the higher-than-expected inflation is due to food prices, which rose an average 4.49 percent during the month from just 2.4 percent in October.

However, the increase in food costs, particularly meat (8.15 percent), fish (5.32 percent) and vegetables (14.6 percent) was due to the series of typhoons that they hit the country, Beltrán said.

The agriculture department estimated that typhoons “Ofel”, “Nika”, “Pepito”, “Quinta”, “Rolly” and “Ulysses” brought P15.3 billion in damage and losses to the agricultural sector.

“The increase in the price level in November is due in part to base effects and mainly to higher prices of important foods,” said Beltrán in his report presented to the Secretary of Finance, Carlos G. Domínguez III.

But the finance official added that the impact of natural calamities on inflation could be mitigated as long as the department of agriculture and the Department of Transportation help facilitate the movements of food supplies from import and surplus food regions.

Despite the slight acceleration in inflation, Beltrán pointed out that the average rate in the first 11 months is only 2.6 percent, still within the inflation target range of 2.0 to 4.0 percent established by the Duterte administration.

Meanwhile, acting secretary for socioeconomic planning, Karl Kendrick T. Chua, said restrictions on public transportation have also contributed to rising inflation.

Chua pointed out that the inflation of transport services remained high in the last six months, as a result of the directives of social distancing and the reduction of passenger capacity in all modes of public transport.

The cost of transportation rose 7.6 percent in November, a reversal of -2.4 percent in the same month last year, but slightly below the 7.9 percent seen last October.

For that reason, Chua raised the need to review the guidelines of the public transportation system and for the LGUs and the Terrestrial Transportation Franchise and Regulatory Board to monitor and review current and unjustified rate increases in public transportation.

He also reiterated his call to gradually reopen the economy and allow more public transportation, while continuing to reinforce the “seven commandments” of safe public transportation.

“To help ease the burden on public transport operators and drivers who have

Negatively affected by the closures, DOTr may also consider waiving some regulatory fees, ”Chua said.