Arroyo, Duterte’s managers meet, tackle inflation

HOUSE SPEAKER Gloria Macapagal M. Arroyo recommended to the Duterte administration’s economic managers five anti-inflation measures during their meeting on Tuesday. Albay 2nd district Rep. Clemente Joey S. Salceda in a social media post late Tuesday bared the discussions between Ms. Arroyo and economic managers in their meeting at the House of Representatives.

HOUSE SPEAKER Gloria Macapagal M, Arroyo recommended to the Duterte administration’s economic managers five anti-inflation measures during their meeting on Tuesday.

Albay 2nd district Rep. Clemente Joey S. Salceda in a social media post late Tuesday bared the discussions between Ms. Arroyo and economic managers in their meeting at the House of Representatives.

“The House under the leadership of Speaker Arroyo proposed to the EMG (economic managers group) measures considered based on the magnitude of a commodity’s contribution to the 5.2% [June] inflation,” said Mr. Salceda.

One such recommendation is that the Department of Energy “consider deferring z-ethane required additional content in oil products as well as the new feed- in- tariff allowance which increased from P0.18 to P0.26/ kwh ( kilowatt hour) as this alone contributed to a P3.16/kwhr increase in Meralco rates.”

Mr. Salceda noted this oil and electricity inflation contributed 0.7 percentage points to the June headline inflation, Mr. Salceda said.

For fish, which contributed 0.6 percentage points, the House Speaker recommended that the “President...,consider reduc(ing) tariff on fish imports to zero but (this) needs Congress to be in recess.”

Ms. Arroyo also recommended that the National Food Authority “purchase 500,000 MT ( metric tons) of well-milled rice with staggered deliveries over 5-6 months,” as rice contributed 0.5 percentage points to inflation.

She also recommended that the President “consider reduc(ing) tariff” on meat imports — which contributed 0.3 — to zero, “but needs Congress to be in recess.”

On the peso depreciation, which weakened by 6.7% year-to-date, Ms. Arroyo said the central bank should study an additional 25 basis point hike in policy rates on top of the 25 basis point increases in May and June due to unanticipated inflationary expectations.

This is “to cleanse market (of) both consumer and business expectations (on) any potential speculative opportunistic content.”

For his part, Finance Secretary Carlos G. Dominguez III said last Tuesday the House leadership and economic managers agreed to prioritize the second package of the tax reform program.

Budget Secretary Benjamin E. Diokno also said yesterday in a TV interview that Ms. Arroyo “seems to be concerned about inflation,” noting that “she may be able to contribute to the conversation” as her presidency over a decade ago experienced high inflation.

Mr. Diokno said the price of oil hit about $135 per barrel during Ms. Arroyo’s time, compared to the $ 55-70 per barrel expected this year.

Besides Messrs. Dominguez and Diokno, Socioeconomic Planning Secretary Ernesto M. Pernia and Bangko Sentral Governor Nestor A. Espenilla attended the meeting with Ms. Arroyo, along with other congressmen.