Wednesday, November 05, 2008 'Happier Christmas' for consumers: Recto
PRESIDENT Gloria Macagapal-Arroyo, in her speech Tuesday at the Investments and Business Expo at SM City Sta. Cruz, said the economic team is "working hard to rein in inflation."
Arroyo said Trade Secretary Peter Favila and local government units will monitor prices and "put the price manipulators out of business."
"We will continue to make spot checks in markets to make sure no one is taking advantage of their fellow citizens during this challenging time," she added.
Economic managers should make sure that pump prices go down, and that commodities will reflect these savings "so that the paycheck will go a longer way," the President said.
"So let's look at pan de sal next time," Arroyo told Planning Secretary Ralph Recto.
Recto said consumers could look forward to a "happier Christmas" because prices are going down and that inflation will also go down, which would "improve our ability next year to make the economy grow at a faster rate."
He said inflation was expected to have peaked in the third quarter but is expected to go down in the last quarter.
He expects inflation to be at around nine percent "give or take a few basis points," based also on the projections of the Bangko Sentral, and better growth in 2009.
"We're in a much better position than many other countries. I'm sure you've noticed that many countries have been bankrupt already...There are first-world countries like South Korea. Well, they're not bankrupt but they have a tremendous problem as well. So we are not in that situation. So there are positive signs," said Recto.
He said lower oil, inflation, and commodity prices will give monetary authorities more tools to help improve the economy's growth next year, adding that the reimposition of the tariff on oil imports could make the peso appreciate and lower the deficit.
Growth in 2009 would give government more tools to ensure a better real growth in the economy. He said there are also other factors such as improved absorptive capacity of infrastructure agencies and early passage of the 2009 budget.
Receto meanwhile hoped that the budget be passed early because it is "the best way to cushion ourselves for this global downturn for 2009."
The President has reiterated that her Cabinet is "working hard to keep down the prices of rice, food and fuel and to increase the number of jobs and investments that will continue to generate high paying employment opportunities for more of our countrymen."
She said government will continue supporting the agriculture sector. "The National Food Authority (NFA) will buy one million metric tons from Filipino farmers compared to last year's less than 100,000 MT while 330,000 MT has been bought by NFA to date compared to 30,000 the last time around."
"We hope our farmers, because they are getting good prices from the NFA will plant more rice. And with this we expect inflation which has started to come down, to come down even more and the price of rice which has started to come down should go down even more and with that we expect the earning power of the workers' and officers' paychecks to increase," she said. (JMR/Sunnex)
