|
INFLATION, which ironically aggravates the plight of
exporters and the families of more than eight million
overseas Filipinos, is forecast to rise higher in June
than in May when this averaged 2.4 percent.
According to Bangko Sentral ng Pilipinas Governor Amando
M. Tetangco Jr., the inflation rate in June could rise
to as high as 2.9 percent even though the overall
inflation environment remains “favorable.”
He said
in a mobile phone message that inflation during the
month should range from a low of 2.2 percent up to a
high of 2.9 percent as most people grapple with the
rising cost of putting back their children to school
again, as well with increases in food and oil prices.
“A
slightly higher inflation in June relative to May is
possible amid the increase in tuition fees as well as in
oil and food prices,” Tetangco said.
Inflation has tracked the Bengko Sentral’s earlier
projection of an uptrend in the first half, followed
later in the second half by a deceleration low enough to
put the average during the year within the 3-percent to
4-percent range.
But
while this speaks much of the relative stability of the
macroeconomic framework, the low inflation rate regime
has hurt exporters.
Sergio
Ortiz-Luis Jr., president of the Philippine Exporters
Confederation, said on Thursday that while goods prices
were low and stable, their operating as well as raw
materials costs kept getting higher every month.
“This
puts the manufacturing sector at a disadvantage against
cheaper imports. As a result, the output of the
manufacturing sector has been declining for over a year
now,” he said, citing government data.
Ortiz-Luiz
and colleagues in the industry received support from the
state-owned Development Bank of the Philippines whose
president and chief executive officer, Rey David, has
offered a hedging mechanism to soften the impact of the
still strengthening peso.
Ortiz-Luis acknowledged the mitigating impact of the
measures the BSP has thus far implemented for the export
sector.
Nevertheless, he said more has to be done: “We appeal to
the BSP and the other economic managers to continue what
they are doing in this area and to further adopt
measures to bring the exchange rate to a level where
exporters can compete.” |
