MANILA: The deputy speaker of the House of Representatives warned Filipinos on Tuesday to prepare for “difficult times ahead,” with a rise in prices of basic commodities forecast to outpace wages, adding to the financial stress facing households.
Inflation in the Philippines soared from 4.9 percent in April to 5.4 percent in May, the highest in more than three years and well outside this year’s 2-4 percent target band.
“Filipinos should be prepared, and must wisely plan on how to budget their income and expenses for the next months, as the country braces itself for turbulent economic times ahead,” House Deputy Speaker Isidro Ungab said in a statement.
He cited the rising inflation rate and skyrocketing energy prices amid the global fallout from the Russian invasion of Ukraine — a main exporter of grain — as well as another possible spike in COVID-19 cases.
“We see difficult times ahead,” Ungab, a former banker, said. “The rise in prices of food and basic commodities is outpacing wages, which is becoming a growing household concern.”
The World Bank said last week that rising inflation in the Philippines is a “pressing concern as it can dampen consumption and worsen poverty” in an economy that was otherwise poised to grow 5.7 percent in 2022.
Kevin Chua, World Bank senior economist, said in a report published by the global lender on June 8 that “taming inflation is a pressing concern” for the country.
“Authorities have to use all available policy tools to address inflation, including monetary measures to prevent the de-anchoring of inflation expectations,” he said.