Fare hike will have .3 percentage points effect on inflation, NEDA exec says

The National Economic and Development Authority (NEDA) said Monday that there would be roughly .3 percentage points effect on inflation if the national government will implement a fare hike amid increase in prices of fuel products.

At the House fuel ad hoc committee hearing, economic affairs panel chairperson Sharon Garin asked what will be the effect on the economy if the government will heed the calls to increase the fare of mass transport vehicles, especially jeepneys.

NEDA Undersecretary Rosemarie Edillon said the increase would surely have an impact on inflation. She said aside from the requested fare hike, the NEDA is also checking other "triggers" on inflation.

"Roughly mga .3 percentage points... titingnan pa rin namin 'yung iba pa na triggers..." Edillon said.

(Roughly it's .3 percentage points, we are still checking other triggers.)

"Titingnan nga po namin, kasi tinitingnan din namin 'yung iba pang triggers on inflation coming from, you know 'wag naman sanang mangyari, interest rate hike, 'yung mga ganoong tipo," she added.

(We are checking other triggers on inflation. You know, like the interest rate hike.)

"'Yung sa increase ng fare hike, kung magsnowball ito into wage hikes, so 'yun ang magiging malaking impact. So isa rin 'yun sa tinitingnan namin kung gaano kalaki 'yung sipa niya for the rest of the economy," Edillon further said.

(If the fare hike will snowball into wage hikes, then that would have a huge impact. We are checking how big the effect would be for the rest of the economy.)

The Philippine Statistics Authority (PSA) has reported that inflation or the rate of increase in the prices of goods and services posted a flat reading in February at 3%.

According to the PSA, the February’s inflation print is slower than the 4.2% rate seen in the same month last year.

There have been petitions to increase fare amid the continuous spike in the prices of fuel products. The Land Transportation Franchising and Regulatory Board will hear and discuss the matter on Tuesday, March 8.—AOL, GMA News