NEDA: Typhoons, transport restrictions push inflation higher in November

The National Economic and Development Authority (NEDA) on Friday said the recent strong typhoons that hit the country and transport challenges due to community quarantine pushed the inflation higher in November.

The Philippine Statistics Authority reported earlier that inflation stood at 3.3% in November, its highest since April 2019 due to rise in the prices of food.

Food inflation accelerated to 4.5% in November from 2.1% in October following recent weather disturbances.

Based on the latest estimates of the Department of Agriculture (DA), as of November 27, 2020, the combined amount of damage and losses to the agriculture sector brought by typhoons Ofel, Nika, Pepito, Quinta, Rolly, and Ulysses amounted to P15.3 billion.

Among the regions, Bicol was the most affected, followed by CALABARZON, Cagayan Valley, and Central Luzon.

This is due to the restrictions on public transport as a result of COVID-19, persistence of African swine fever, and damage and losses in high value crops following the onslaught of several typhoons and flooding in November 2020, according to acting Socioeconomic Planning Secretary Karl Kendrick Chua.

“Our experience with the recent typhoons has highlighted the need for long-term engineering interventions, reforestation, and coordinated flood management systems across different LGUs and the need to intensify the distribution of climate-resilient technologies and other production support assistance to mitigate production loss in the agriculture sector,” Chua said.

The NEDA chief added that the Quick Response Fund (QRF) can also be utilized to repair and rehabilitate production facilities and irrigation systems damaged by the recent typhoons.

Inflation for transport services has remained elevated in the last six months, as a result of social distancing directives and reduced passenger capacities in all modes of public transport.

Chua noted the need to revisit public transport system guidelines and for LGUs and the Land Transportation Franchising and Regulatory Board (LTFRB) to monitor and review prevailing and unwarranted fare increases in public transport as we gradually reopen the economy and allow more public transport, while still reinforcing the “seven commandments” of safe public transportation.

The seven commandments include:

• Magsuot ng face mask at face shield;
• Bawal ang pagsasalita, pakikipag-usap o pagsagot ng telepono;
• Bawal kumain sa loob ng sasakyan;
• Kailangang may sapat na ventilation;
• Kailangang may frequent disinfection;
• Bawal magsakay ng symptomatic passenger; and
• Kinakailangang sumunod sa appropriate physical distancing.

“To help ease the burden on public transport operators and drivers who have been adversely affected by the lockdowns, the Department of Transportation (DOTr) may also consider waiving some regulatory fees as well as expanding the efficient service contracting mechanism to incentivize continued operations and encourage even more public utility vehicles (PUV) to resume operations, given the reduced load capacity in adherence to minimum health standards,” Chua added.

In a separate statement, Bangko Sentral ng Pilipinas Governor Benjamin Diokno, likewise, said the impact of supply disruptions due to recent typhoons to inflation “is expected to be largely transitory.”

“The BSP stands ready to deploy its full arsenal of instruments, as needed, in fulfilment of its mandate to maintain price and financial stability conducive to sustainable economy growth and employment,” Diokno said.—AOL, GMA News