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Food prices, power rates keep Filipinos up at night in 2nd year of Marcos Jr. admin

Article (news)

Alvin Elchico

ABS-CBN News

MANILA — Last June, inflation eased to 3.7 percent, falling within the government target of 2 to 4 percent, which was also lower than the 5.4 percent recorded in June 2023. Despite that, economic managers admit prices of some basic goods continue to accelerate.While only a handful of basic goods with suggested retail prices were allowed to increase prices in the second year of the Marcos administration, a number of basic products that the government does not monitor became more expensive.<div><a class="fr-green fr-strong" href="https://news.abs-cbn.com/news/2024/7/19/nearly-6-in-10-filipino-families-feel-poor-sws-1034">READ: Nearly 6 in 10 Filipino families feel poor: SWS</a></div>This was observed by supermarket owner Steven Cua, who checks prices of goods on a daily basis. He said price spikes eased but the recent wage hike may further bloat prices.&quot;Medyo bumagal lang ng konti ngayon, I guess they&#x27;re all waiting for the wage increase to finalize… Manufacturers are still waiting for the final answer for them to make a final decision on the wage increase kasi napakahirap na magtaas o magbaba ng presyo. Akala ng tao itaas mo lang na parang sa palengke, (pero) nationwide ito e,&quot; Cua said.Trade Secretary Alfredo Pascual said while prices of several goods outside the SRP scheme rose, consumers still have options.&quot;Meron naman talagang premium products na tumaas — mga imported — kasi nag-devalue ang peso eh. Kung hilig nila imported products eh talagang puwedeng mangyari yun, mababawasan &#x27;yung mga pinamimili nila dahil tumaas nga ang presyo. Sa exchange rate pa lang, makikita mo na tataas talaga ang local price,&quot; he said.Some economists weighed in on how the administration is addressing the issue keeping most Filipinos up at night: inflation.UP School of Economics Professor JC Punongbayan said that on a scale of 1 to 10, the administration scored 6.&quot;Pagdating sa overall inflation pagdating sa presyo ng basic goods...hindi porke&#x27;t bumaba ang inflation ay bumababa rin ang presyo ng bilihin, ang ibig sabihin lang noon tumataas pa rin ang presyo di lang ganun kabilis yung pagtaas nya,&quot; he said.Dr. Ser Percival Peña-Reyes, an economist from the Ateneo Center for Economic Research also gave the government a grade of 6.&quot;I don&#x27;t find this joy in giving this grade… Presyo ng food has been driving the inflation, inflation is on the uptick again and it is really food prices,&quot; he said.<div>POWER RATES ALSO UP</div><div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/172155736345320240111-electric-meter-reading-MD0081.jpg" style="width:960px" class="fr-fic fr-dib" alt="Workers inspect an electric meter installed above ground in Manila on January 11, 2024. Mark Demayo, ABS-CBN News/File"/>Workers inspect an electric meter installed above ground in Manila on January 11, 2024. Mark Demayo, ABS-CBN News/File</div>As consumers reel from higher prices of goods, power supply and electricity prices have further eroded Filipinos&#x27; limited budget.In 2023, the Department of Energy assured the public there would be no problem in electricity supply come summer of 2024. But as more power plants bogged down, the Luzon and Visayas grids were plagued by yellow and red alerts that threatened supply and led to higher electricity prices in the spot market.But Energy Secretary Raphael Lotilla says no one but nature should be blamed for what happened.&quot;I am not God and I have not pretended to be almighty  and all-seeing… These extreme events, if these are going to be or constitute the new normal, then we should be prepared for that,&quot; he said.Despite what’s happening in the power sector, Punongbayan says, the government gets a passing grade on this front.He said the country seems to still be in good condition despite the extreme heat in the previous months.But Peña-Reyes thinks otherwise, saying he would give a grade of 6.&quot;Prices of electricity, also mahal. Yes, it&#x27;s really more of managing the supply side of it. How to ensure that we have adequate supply.&quot;Lotilla is confident the series of alerts will not have a repeat in 2025 as more power supply goes online this year and the next.&quot;Since next year is an election year, we also need to prepare for that but on the whole, I am positive of what has been achieved,&quot; he said.<div><a class="fr-green fr-strong" href="https://news.abs-cbn.com/business/2024/7/16/green-energy-advocates-launch-10-million-solar-rooftops-challenge-1747">RELATED: Green energy advocates launch &#x27;10 Million Solar Rooftops Challenge&#x27;</a></div>Both economists also laud the DOE for championing renewable energy.&quot;Balansehin natin na gusto nating masiguro yung supply ng kuryente pero on the other hand, kailangang malinis ang teknolohiya na gagamitin natin doon sa transition natin habang mas nagrerely tayo sa renewable energy,&quot; Punongbayan said.While for Peña-Reyes, &quot;Energy must be at the forefront of our investment plans and being able to attract investors here but then again investors will not come easily if they don&#x27;t see improvements really in other areas like governance.&quot;<div>ECONOMIC GAINS</div>Meanwhile, the economy grew 5.6 percent in 2023, lower than the government target.Still, it remains among the fastest growing in the region. For 2024, multilateral groups also expect the country to grow among the fastest in the region.For both Punongbayan and Peña-Reyes, the government did okay in handling the economy in the second year of the Marcos Jr. administration. &quot;It can&#x27;t be helped, when we compare ourselves with our ASEAN neighbors, medyo mataas ang ating inflation rate versus our neighbors and also (our) unemployment rate,&quot; Peña-Reyes said.&quot;Parang di pa natin nararating yung tinatahak nating direksyon bago mag-pandemic. Gusto sana natin na maka-recover na sana tayo pero lumalabas sa mga pag-aaral na mukhang imposible na makahabol tayo doon sa dapat natin tinahak kung di nangyari ang pandemic,&quot; said Punongbayan.As the government&#x27;s economic managers themselves admit, there’s a lot more that needs to be done.<div>RELATED VIDEO</div><div><iframe width="640" height="360" src="https://www.youtube.com/embed/gku-cQr_Ams?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>

Last June, inflation eased to 3.7 percent, falling within the government target of 2 to 4 percent, which was also lower than the 5.4 percent recorded in June 2023. Despite that, economic managers admit prices of some basic goods continue to accelerate.

Last June, inflation eased to 3.7 percent, falling within the government target of 2 to 4 percent, which was also lower than the 5.4 percent recorded in June 2023. Despite that, economic managers admit prices of some basic goods continue to accelerate.