House leaders will ask the National Price Coordinating Council to submit a report on steps it has taken to cushion the impact of rising prices of basic necessities and prime commodities, Majority Leader and Camarines Sur Rep. Rolando Andaya Jr. said Monday.
Under the law, the NPCC is mandated to report at least semi-annually to the President and to Congress the status and progress of programs, projects, and measures undertaken by implementing departments, agencies or offices, as well as the comprehensive strategies developed by the council to stabilize prices.
The NPCC is chaired by the secretary of Trade and Industry and composed of other Cabinet members from Departments of Agriculture, Health, Environment, and Natural Resources, Local Government, Transportation and Communications, Justice, and Energy.
Other members of the Council include the director general of the National Economic and Development Authority and one representative each from consumers, agricultural producers, traders, and manufacturers.
“We want to know from Council members if there is really widespread hoarding and illegal price manipulation taking place,” Andaya said. “We are interested in knowing if the suggested retail price is being enforced. What do we do about those who violate the SRP?”
“If hoarding and profiteering are really behind the unreasonable price increases, the Price Coordinating Council may recommend that the Executive Department resort to drastic measures to protect our consumers,” he added.
In Mindanao, for instance, where martial law is still enforced, Section 6 of the Price Act mandates that “the prices of basic necessities shall automatically be frozen at their prevailing prices or placed under automatic price control.”
In Luzon and Visayas, Andaya said, the Council may invoke Section 7 which states that “the President, upon the recommendation of the implementing agency or the Price Coordinating Council, may impose a price ceiling on any basic necessity or prime commodity” in cases of “prevalence or widespread acts of illegal price manipulation” and “whenever the prevailing price of any basic necessity or prime commodity has risen to unreasonable levels.”
“In some places, inflation is higher than the national average. Rice and gas prices have shot through the roof in many provinces where the cost of transporting them is expensive,” Andaya said.
“A national price picture will give us an idea on where enforcement should be tougher, and where stocks should be rushed,” he added.
Meanwhile, Parañaque City Rep. Gus Tambunting, member of the House majority bloc, said the economy remains strong despite the rise in the rate of inflation.
“I believe the inflation rate can be attributed to more money circulating in our economy as a result of lower taxes for many of our countrymen. I do not believe any drastic measures need to be taken as of the moment to tame inflation. The economy remains strong and growing in spite of the inflation rate. More jobs are being created and investors are still coming in,” said Tambunting in a text message.
House deputy speaker and Batangas Rep. Raneo Abu admitted that the public will continue to suffer from the Tax Reform for Acceleration and Inclusion Law as its so-called social protection will trickle down in a few months time.
Abu said it will take few more months to polish the system aimed at cushioning the impact of the rising commodity prices.
“The improved execution of the social benefits card, unconditional cash transfers, and fuel vouchers of the Republic Act [RA] 10963 or the TRAIN Law available to poor beneficiaries will still need some refinements,” Abu said.
He added “the Duterte administration is doing everything to address the inflation, adding that the gains of TRAIN 1 are being felt nationwide through programs that are being implemented nationwide which create job opportunities for Filipinos.”
But citing a study conducted by the Asian Development Bank, Marikina Rep. Romero Quimbo lamented how millions are now poorer due to the unabated rise in prices in 2018. He reiterated his call to urgently pass House Bill 8171, which provides for a moratorium on excise taxes on fuel under TRAIN and return to zero the excise taxes on kerosene and diesel.
“While we debate endlessly on the technicalities of inflation, we cannot gloss over the fact that the poor agonize over every peso increase in the price of basic necessities,” Quimbo said.
In the Senate, Agriculture Secretary Manny Piñol said there is enough rice in the country to meet current needs, but hoarders could be keeping the grain out of the market.
“In spite of the reported shortage, there was actually no shortage of rice,” he said in a mix of English and Filipino. “Speculation took place.”
Piñol said the Department of Agriculture was not involved in importation or the distribution of rice.
The rising prices could have been caused by delays in the importation or in the release of the imported rice, he said.
“Maybe some people hoarded the rice, and the late importation also affected the market,” he said.
The Philippines has imported 250,000 metric tons of rice to beef up the supply, and announced an additional 250,000 MT in imports by private traders.
But the NFA said the shipments have yet to be fully released to retailers because of bad weather.
The Palace on Monday reiterated President Rodrigo Duterte’s remark blaming US President Donald Trump for the growing inflation.
“The economic crescendo of the world economy was abruptly interrupted with the trade war,” said Presidential Spokesman Harry Roque in a Palace press briefing Monday afternoon.
“We know that all growth forecasts have now been adjusted because as a result of the trade war, we know that growth may not be as fast as we expected it to be,” he said.
“Now, in an earlier study, they say that the Philippines is most susceptible because our exports to China are in turn re-exported by China to the United States. So, that’s what the President said, the momentum of the country’s economic development was interrupted, although we still have very good economic growth recorded so far,” Roque said.
Roque said America’s activities affect the country’s inflation.
“We will have weaker exports and slower economic growth,” he said.
He added that Duterte’s mandate to his Cabinet members to help curb the rising inflation is to do the necessary actions as the chief executive himself does not micro-manage.
“We have authorized the importation of cheaper oil from Russia. We have allowed entry of imported agricultural products. We have removed special safeguard measures. We have increased regional daily wages all over the country. He has vowed to run after hoarders of rice. We have authorized the importation of rice itself. And I think, we will also authorize the importation of broken rice to augment the supply of 27 pesos per kilo rice,” said Roque.
In his arrival speech last Saturday morning, Duterte said the inflation started when Trump constricted America’s trade.
“Inflation, yes. Why? Who started it? America. When America raised its prices of rice, everyone else did. That’s how it is. We cannot do anything about it,” said Duterte. “I will admit that there is inflation. Was there a President who did not experience inflation?”