Gov’t can address rising inflation – Arroyo

Former President and now Speaker Gloria Macapagal Arroyo remains positive that the government will be able to address rising inflation, saying that the country had weathered worse economic hardship at 6.6 percent inflation, 0.2 degrees lower than the current rate.

But opposition congressmen were less forgiving as they called for the resignation of economic managers who continued to ignore House proposals that would address the soaring inflation.

Minority Leader Danilo Suarez also aired serious misgivings over the Duterte administration’s insistence on fast-tracking the Tax Reform for Acceleration and Inclusion 2 (TRAIN 2) or what has been christened Tax Reform for Attracting Better and High Quality Opportunities (TRABAHO), warning that this might contribute to heightened inflation.

Swift passage of the bill proposing a temporary moratorium on TRAIN 1-imposed taxes on fuel products is being proposed by Marikina City Rep. MiroQuimbo, who heads another group of minority lawmakers.

Vice President Leni Robredo supported Quimbo, asking President Duterte to certify as urgent the Bawas Presyo Bill that seeks to suspend the excise tax on fuel under the tax reform law.

Robredo, a lawyer, made an appeal to Duterte during the “Kamustahang Bayan” in Zamboanga City, where she visited the Old Public Market to check the prices of rice and other basic goods.

“We plead to our senators, congressmen, including President Duterte to certify (the bill) as urgent because we want to control the rising inflation,” Robredo said.

Arroyo, who remains one of the country’s most respected economists, urged government to consider the proposals the Lower House gave to the Duterte administration economic managers who met with her follower her election as speaker in July.

Together with fellow economist, Albay Rep. Joey Salceda, Arroyo proposed five measures that will address rising inflation.

Among these are the deferment of the z-ethane use as additional content in oil products and zero tariff on fish imports.

The House leader also recommended that the National Food Authority “purchase 500,000 metric tons (MT) of wellmilled rice with staggered deliveries over five-to-six months and consider the reduction oof tariff on meat imports.

To address peso depreciation, Arroyo urged the Bangko Sentral ng Pilipinas to “study an additional 25 basis point hike policy in rates on top of the 25 basis point increase in May and June due to unanticipated inflationary expectations.”

“Hopefully, this should be the peak. Hopefully, because I remember in my time in March of 2009, the inflation was 6.6 but by June it was down to 1.5,” Arroyo said in an ambush interview with House media Tuesday.

She added: “So conceivably even a sharp increase can be resolved but we have to analyze what is driving it and therefore how to address what’s driving it.”

Arroyo maintained that TRAIN 1, blamed by many as the reason for kicking up inflation, “is a very, very small portion of the increase.”

According to her the government must look at five main drivers of inflation which are “the exchange rate, the rice, the fish, the meat and the oil.”

In a separate press statement, Salceda said the rise in inflation this month was “self-inflicted, largely because we did little or nothing.”

Salceda said the spike to 6.4 percent was “higher than market expectations.”

“But what is more worrisome is that it would reverse gains in poverty reduction and hunger mitigation since the main culprit is food inflation which surged by 8.5 percent. Thus the inflation of the poor (lowest 30 percent) is estimated at 7.4 percent,” he said.

“We can no longer blame market opportunist profiteers and rice hoarders,” he explained.

House Senior Deputy Minority Leader and Buhay Party-list Rep. LitoAtienza and Suarez said it is now time for the Duterte economic team to give up their post for their failure to address the inflation worries of the country.

On the other hand, AkbayanPartylist Rep. Tom Villarin blamed President Duterte for responding to the inflation issue by intimidating and threatening to arrest critics like Senator Antonio Trillanes.

“Duterte is trying to deflect his economic woes by hitting the opposition hard. High time that we revive people power,” stated Villarin.

For his part, Ifugao Rep. Teddy Brawner Baguilat, called on Duterte to devote more energy in arresting the runaway inflation.

“The spike in the price of rice borne by the incompetence and infighting of its officials and the lack of social protection programs have made the poor unable to cope with hyperinflation,” he said, warning that “social unrest brews.” (With a report from Raymund Antonio)