MANILA: The Deputy Speaker of the House of Representatives on Tuesday warned Filipinos to prepare for “tough times ahead”, with rising commodity prices expected to outpace wages, adding to the financial strains faced households.
Inflation in the Philippines rose from 4.9% in April to 5.4% in May, the highest in more than three years and well outside this year’s target range of 2-4%.
“Filipinos need to be prepared and need to plan wisely how to budget their income and expenses for the coming months as the country prepares for a turbulent economic period ahead,” said the Deputy Speaker of the House, Isidro Ungab, in a statement.
He cited rising inflation and skyrocketing energy prices amid global fallout from Russia’s invasion of Ukraine – a major grain exporter – as well as another possible spike in cases of COVID-19.
“We see tough times ahead,” said Ungab, a former banker. “Rising food and commodity prices are outstripping wages, which is becoming a growing household concern.”
The World Bank said last week that rising inflation in the Philippines is of “urgent concern as it may dampen consumption and deepen poverty” in an economy that was otherwise on pace to grow 5.7% in 2022.
World Bank senior economist Kevin Chua said in a report released by the global lender on June 8 that “controlling inflation is a pressing concern” for the country.
“Authorities should use all available policy tools to fight inflation, including monetary measures to prevent the unanchoring of inflation expectations,” he said.
