MALACAÑANG, Philippines – Malacañang on Sunday has attributed the all-time low inflation of 0.6 percent last August, to the government’s sound microeconomic management.
“Masasabi nating magandang epekto ng overall sound macroeconomic management ng ating pamahalaan, at pwede nating ipagmalaki na sa buong rehiyon—maaaring sa buong mundo pa nga—tayo ay mayroong pinakamababang inflation rate,” said Presidential Communications Operations Office Secretary Herminio Coloma, Jr., in a radio interview with dzRB Radyo ng Bayan.
This rate has brought the year-to-date headline inflation to 1.7 percent, which is below the target range of 2 to 4 percent set by the government for this year.
“Habang mababa ito ay napakainam para sa ating ekonomiya, dahil ibig sabihin lang napoprotektahan o napre-preserve ang purchasing power of the peso, at ito ay senyales ng mahusay na pagmamaneho ng ekonomiya,” Coloma said.
“Kapag mababa ang inflation, ibig sabihin naipapagtugma nang mahusay ang mga elemento ng supply doon sa elemento ng demand. Hindi nagkakaroon ng mga artificial shortage dahil ang ganyang mismatch between supply and demand ang lumilikha ng inflationary pressure; at kapag hindi maayos ang takbo ng ekonomiya, pangkaraniwan na resulta ang inflation,” he added.
When asked if the Philippines seems to be shielded from China’s economic slowdown, Coloma said this was not the case.
“Hindi ganoon kalaki ang dependency ng ating ekonomiya sa economy ng People’s Republic of China kaya’t hindi naman tayo gaanong naaapektuhan ng binanggit mo na external shocks mula sa bansang iyon,” said Coloma.
Last August, China’s stock markets plunged and its currency has been devalued, which caused a domino-effect in the world economy. China is the world’s second-largest economy.
All-time low inflation, result of sound microeconomic management
