Diokno tells Pinoys not to worry about inflation: We’re within target
Budget and Management Secretary Benjamin Diokno said there was no reason for people to be worried about the uptick of Philippines’ January 2018 inflation rate to four percent from 3.3 percent last January, citing that economic fundamentals remain intact.
“Let’s not get worried about it. The economy is doing very well,” he told journalists Tuesday.
The Budget and Management chief explained that inflation rate last January remained within the government’s two to four percent target for 2017-19.
While inflation rate last January scraped the upper end of the government’s target band for the three-year period, the DOF said its current level “is considered moderate.”
“As the inflation target is set by the BSP (Bangko Sentral ng Pilipinas) for the whole year, one month of higher inflation is not a concern,” the DOF said.
DOF estimates that TRAIN tax reforms will result to about 0.5-0.7 percentage points increase in inflation rate this year, which is considered “very minimal” and “manageable.”
With these factors, Diokno does not expect inflation to go beyond four percent this year. “I think it will settle slightly above three percent. It will be within range,” he said.
On a monthly basis, inflation may hit four percent level, he said, adding that medium term outlook on prices of oil in the international market shows a a downward path. (PNA)