NEDA exec expects tamer inflation in January

Inflation rate is expected to be tamer in the first month of 2023 as the factors which led to the accelerated rise in consumer goods and services prices in December are no longer at play, a top official of the National Economic and Development Authority (NEDA) said Tuesday.

In December 2022, inflation or the rate of increase in consumer prices rose to 8.1%, a new 14-year record, from 8.0% in November 2022 and a leapfrog from the 3.1% seen in the same month in 2021.

During PTV’s public briefing, NEDA Undersecretary Rosemarie Edillon said that “seasonal factor” and the year-on-year low base effect led to the accelerated inflation in December.

“Nung December nakita namin mataas effect ng seasonal factor, then 'yung base effect din nun dahil 'yung December 2021 marami pang saradong mga sectors, regions so malaki ang naging [pickup] ng December demand [causing] major supply shocks sa major commodities,” she said.

(In December, we saw that the seasonal factor had a major impact, then the base effect as well since in December 2021 there are still a lot of closed sectors, regions so the demand in December has picked up causing major supply shocks in major commodities.)

The NEDA official said the demand shock, seasonal factor, and the base effect are no longer present in January.

“Itong January, we expect na, wala na 'yung December demand shock, 'yung seasonality na 'yun. 'Yung base effect hindi na rin medyo magiging factor. Hopefully 'yung domestic supply ay maiayos na rin,” she said.

(This January, we expect that the December demand shock and the seasonality will no longer be at play. The base effect will no longer be a factor as well. Hopefully the domestic supply will also improve.)

NEDA Secretary Arsenio Balisacan earlier said that “the government will continue to prioritize addressing the impact of inflation as it remains to be a challenge not only in the country, but throughout the globe” as part of the Marcos administration’s eight-point socioeconomic agenda and the Philippine Development Plan 2023 to 2028.—AOL, GMA Integrated News