The government will strengthen agricultural production and logistics and provide targeted assistance to sectors affected by higher energy costs, the Department of Economy, Planning, and Development (DEPDev) said Thursday.
DEPDev made the assurance after the country’s headline inflation accelerated to 7.8 percent in October from 7.2 percent in September, mainly due to higher energy and transport costs.
Data from the Philippine Statistics Authority (PSA) showed that transport inflation rose to 20.1 percent from 14.6 percent in September.
The faster increase in prices of housing, water, electricity, gas and other fuels, which rose to 9.3 percent in October from 8.4 percent in the previous month, also contributed to the uptick in inflation.
Food inflation, however, slowed to 6.4 percent from 6.8 percent the previous month, supported by favorable weather and improved supply.
The downtrend in food inflation was mainly driven by a slower increase in prices of fish, vegetables, tubers, plantains, cooking bananas, and pulses.
To help lessen the impact of these pressures, DEPDev said the Department of Agriculture (DA) has expanded support through the Rice Competitiveness Enhancement Fund (RCEF).
RCEF provides farmers with certified seeds, farm machinery, training, and credit assistance to improve productivity and strengthen domestic rice supply.
The DA is also expanding KADIWA ng Pangulo outlets and direct marketing initiatives to connect producers with consumers and make food more affordable.
As of Oct. 21, the DA already released PHP11 billion in production support, indemnification assistance, cash aid, and other interventions for affected farmers and fisherfolk.
To cushion the impact of elevated fuel costs, the government also began rolling out PHP3 billion in fuel subsidies in October for around 300,000 farmers, fisherfolk, and agricultural delivery-truck drivers.
Farmers and fisherfolk will receive a one-time subsidy of PHP5,000, while delivery-truck drivers will receive PHP2,000 weekly to support farm-to-market deliveries.
The Department of Energy (DOE) is likewise taking steps to ensure adequate power supply amid El Niño conditions, including augmenting generation capacity and accelerating the deployment of energy storage systems.
The Energy Regulatory Commission (ERC), in coordination with the DOE, also temporarily suspended the Wholesale Electricity Spot Market (WESM) Reserve Market to help curb elevated ancillary service costs that have contributed to higher electricity rates, particularly in the Visayas.
The government, through the Inter-Agency Committee on Inflation and Market Outlook and in coordination with the Bangko Sentral ng Pilipinas, also continues to monitor price developments and align policy responses to emerging inflation risks.
“We will continue strengthening targeted interventions that support producers, improve supply, and provide relief to vulnerable sectors,” DEPDev Secretary Arsenio Balisacan said.
“By improving agricultural productivity and logistics and addressing constraints in food and energy supply, we can ease price pressures, protect purchasing power, and build greater resilience against external shock,” he added. (PNA)