Photo courtesy of Tracy Cabrera.
With the inflation surging to 7.2 percent at the latest count, Senator Sherwin Gatchalian has expressed significant concern over the accelerating increase of prices among basic commodities that is largely driven by global oil price spikes and the escalating conflict in the Middle East.
Speaking at a media forum at historic Cafe Adriatico in Malate, Manila, Hthe Senate economic affairs committee chair warned that the country could face a potential inflationary surge that may drag down economic growth.
Basing his statement from data gather in March and April, Gatchalian noted the soaring global oil and coal prices, which have been causing consecutive weekly increases in local pump prices.
He highlighted that rising tensions in the Middle East could drive inflation higher—potentially from 4.5 to 4.8 percent if oil prices reach US$140 per barrel—and could reduce the country’s GDP growth.
“(Our) GDP could drop to 3.5 percent and inflation could reach 8.6 percent if prices continue to surge,” he cited while stressing that the squeeze on household budgets needs to be addressed through immediate passage of measures that would increase the take-home pay of middle-class workers.
The veteran senator likewise emphasized the need for government intervention to provide subsidies to the citizenry, particularly the poorest, transport groups, as well as micro, small and medium enterprises (MSMEs).
He also disclosed that he is calling on the departments of Agriculture (DA) and Trade and Industry (DTI) to closely monitor the prices of basic goods in order to avoid possible abuses.
In ending, Gatchalian questioned why domestic fuel rollbacks have not matched the significant declines in international Brent crude prices, hinting at potential profiteering.
“(I fully) support our president’s declaration of a state of national energy emergency (because) it as a necessary step to manage the impact of the crisis. And to reduce dependence on imported oil, (I am) pushing for an extension of incentives for electric vehicles,” he asserted while mentioning that widespread adoption of EVs is still far off due to infrastructural challenges.