“We will continue to provide targeted support to key affected sectors. Measures include fuel subsidies for the public transport sector, fuel discounts for farmers and fisherfolk, and social pension for indigent senior citizens,” said Diokno in a series of Tweets on Tuesday following the government release of the 6.3 percent August inflation number.
DOF Secretary Benjamin E. Diokno
Diokno likewise reiterated the government’s commitment to support local food production to ensure the adequate supply of food in the domestic market.
The DOF chief said inflation is expected to remain elevated for the rest of 2022. He expects it to peak in the third quarter and then it will slow down in the last quarter of the year.
Diokno, who is former central bank governor, said inflation will fall back to within the 4.5 percent to 5.5 percent inflation assumption set by the Development Budget Coordination Committee (DBCC). The medium term government inflation target is two percent to four percent.
Diokno said last month that inflation rate will not have any severe impact on the Marcos administration’s gross domestic product (GDP) growth rate targets.
He previously noted that GDP need only to grow by 5.2 percent in the second half to achieve a 6.5 percent growth this year. The GDP grew by 7.4 percent in the second quarter, slower than 8.2 percent in the first three months of 2022. The DBCC growth assumptions for 2022 is 6.5 to 7.5 percent.
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