Senate starts review of TRAIN effects

The Senate committee on economic affairs will convene today economic experts and members of academe to look into the effects of rising inflation and to identify the immediate government actions to mitigate the effects of rising prices on Filipino consumers.

In filing the resolution to call the experts to a hearing, committee chair Sen. Sherwin Gatchalian stressed the need to look into the macroeconomic fundamentals of the country, particularly those focusing on the means to contain rising inflation.

“The biggest component of the inflation we are experiencing now involves food prices. This is a cause for concern because studies show that higher inflation, especially if driven by rising food prices, is related to higher hunger incidence among the poor and working-class sectors,” he pointed out.

“We need to identify and implement a strong plan of action to get this inflation under control and make sure our countrymen have enough food to put on the table for their families,” Gatchalian added.

Records from both the Bangko Sentral ng Pilipinas (BSP) and the Philippine Statistics Authority (PSA) revealed a 3.95 percent inflation figure for January 2018, the highest January inflation rate since 2014 at 4.24 percent. Food and non-alcoholic beverages registered second among basic goods and commodities, having the biggest inflationary increase for the year at 4.47 percent.

The public hearing shall also include a discussion on the potential causes of inflation, such as rising oil prices, heightened consumer demand and a weakening peso.

Aside from this, Gatchalian said he will seek updates on the effects of the recently rolled out Tax Reform for Acceleration and Inclusion (TRAIN) law on the purchasing power of consumers, as well as the changes in consumer behavior that have already been observed.

Similarly, he will probe the exact operational status of the expanded cash transfer program that the administration has promised to implement to shield 10 million families from the inflationary effects of TRAIN.

“Essentially, the aim of this hearing is to get a clear snapshot of the state of the Philippine economy at this moment, with special focus on gauging the effects of this administration’s economic reforms on Filipino consumers. This snapshot will be critical to the crafting of responsive strategies to keep the rising prices of goods and services under control,” the senator said.