As Feb inflation rises to 4.7%, Neda pushes lower pork tariffs
AS inflation was reported on Friday to have accelerated in February, the National Economic and Development Authority (Neda) said the Cabinet-level Committee on Tariff and Related Matters (CTRM) will submit its recommendation to temporarily lower pork tariffs.
On Friday, the Philippine Statistics Authority (PSA) reported that the country’s average inflation rate increased to 4.7 percent, the highest since December 2018, due to more expensive pork products.
In a statement, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said the CTRM recommendation proposes to immediately lower pork tariffs to 5 percent within the minimum access volume (MAV) and 15 percent outside the MAV for 3 months, with a slight increase to 10 percent within the MAV and 20 percent outside the MAV for 9 months.
“These rates are significantly lower than the current 30 percent within the MAV and 40 percent outside the MAV, and takes into account the concerns of various stakeholders raised during the public consultations,” Neda said in a statement.
Chua lamented that the recent increase in inflation, particularly of pork, was due to the raging African swine fever (ASF) outbreak.
In a briefing, National Statistician Claire Dennis S. Mapa said prices of fresh pork pure meat products increased 55.2 percent year on year to an average of P323 per kilo in NCR in February 2021 from P208 per kilo in February 2020.
For fresh pork meat with bone, Mapa said prices increased 48 percent to P298 per kilo in February 2021 from P202 in February 2020.
For areas outside of the National Capital Region (AONCR), fresh pork pure meat products increased 53 percent year on year to an average of P317 per kilo in February 2021 from P207 per kilo in February 2020.
For fresh pork meat with bone, Mapa said prices rose 55 percent to P280 per kilo in February 2021 from P181 in February 2020.
“We know how important it is to keep prices low and stable, especially at this time of limited economic activities when people generally have lower income. It is unfortunate that we continue to face ASF outbreaks and weather disturbances that have been affecting production and driving up food prices,” Chua said.
Chua added that hog repopulation programs in “green zones” or Asf-free areas need to be prioritized. The program includes the provision of swine livelihood enterprise, establishment of breeder multiplier farms, and intensive and modernized production.
He also underscored the need to facilitate unhampered delivery of agriculture and fishery products, and the continued strict implementation of Food Resiliency Protocol in coordination with local government units.
“The government’s immediate interventions have eased inflation for some items but some policy actions will take some time before we feel the effects. What is important is to keep doing more and doing it faster to ensure poor households do not suffer twice, first from loss of income, and then for having to pay for higher prices,” Chua said.
Inflation surging 4.7 percent in February is the highest since December 2018 when inflation was at 5.1 percent.
Inflation in January was at 4.2 percent and in February 2020, was at 2.6 percent. In the first two months of the year, the average inflation was at 4.5 percent.
PSA said the increase in the country’s inflation was mainly brought about by the uptick in the inflation of the heavily weighted food and nonalcoholic beverages at 6.7 percent during the month, from 6.1 percent in January 2021.
Contributing also to the uptrend in the overall inflation during the month were the higher annual increments recorded by Alcoholic beverages and tobacco, 12.2 percent; Housing, water, electricity, gas, and other fuels, 0.9 percent; and Health, 2.9 percent.
The data also showed there an increase in Transport at 10.4 percent; Communication, 0.3 percent; and Restaurant and miscellaneous goods and services, 3.2 percent.