THE National Economic Development Authority (NEDA) said it expects inflation in March to be lower or level with February’s.
“We’re expecting it (to be) either the same or lower,” Assistant Secretary for NEDA’s Regional Development Office Mercedita A. Sombilla said in a news conference on Monday when asked for the agency’s estimate for inflation this month.
In February, inflation was 3.8%, unchanged from a year earlier and down from 4.4% in January.
NEDA’s March projection hinges on the continued of oil prices and rice, according to Ms. Sombilla.
She said the estimates also factor in the effects of the El Niño, which the economic planners assume will have “a very minimal” effect, particularly on rice production.
According to the Department of Agriculture’s Disaster Risk Reduction and Management Operations Center, damage inflicted by El Niño on farms totaled P1.33 billion as of March 19, covering 78,348 metric tons (MT) of output.
Losses to the rice crop totaled 41,003 MT, worth P814.40 million.
Ms. Sombilla also said traders may soon import rice to further shore up domestic supply if the El Niño threat intensifies, with the Rice Tariffication Law’s implementing rules and regulations up for signing within the week.
In addition, rice stocks built up before the Rice Tariffication Law kicked in are still available to keep supply stable, Ms. Sombilla said.
According to the National Food Authority, the inventory of rice, including approved orders from Dec. 20, 2018 to March 5, totaled 357,816.45 metric tons.
Despite prices of the staple grain being steady, NEDA said it “remains vigilant” on other commodities such as corn which has also been “slightly” affected by El Niño.
The government forecasts inflation in 2019 to average within the 2 to 4% range. — Janina C. Lim
