Gatchalian urges economic managers to focus on addressing inflation for bottom 30% of income households

PHILIPPINES, August 16 - Press Release
August 16, 2024

Gatchalian urges economic managers to focus on addressing inflation for bottom 30% of income households

Senator Win Gatchalian urged the country's economic managers to focus on addressing inflation for the bottom 30% of income households or the poorest of the poor.

Gatchalian noted that while headline inflation for all income households has eased substantially from high rates seen in the second half of 2022 through the first half of 2023, inflation for the bottom 30% of income households has remained elevated.

He pointed out that in 2022, headline inflation averaged 5.8% even as the inflation rate for the bottom 30% of income households was higher at 6.6%. Last year, headline inflation for all income households averaged 6.0% against inflation for the bottom 30% of 6.7%. This year, headline inflation for all income households in the first six months was at 3.6% while inflation for the bottom 30% remained higher at 4.8%.

The higher inflation rate experienced by the bottom 30% of income households was due mostly to high prices of food items, said Gatchalian.

"Our constituents are very sensitive to the price of food and rice. This is something I want to highlight because typically we only look at the headline inflation but it is obvious that the poorest segment of our society feels the impact of high inflation much greater compared to the rest of the population," Gatchalian said during a recent Senate briefing on the 2025 proposed budget.

According to him, the government needs to put in place programs that will address the high inflation rate for the bottom 30% of income households.

The chair of the Senate Committee on Ways and Means, Gatchalian emphasized that while a plan to reduce import tariff on rice is expected to lower grain prices in the near to medium term, the government also needs to come up with a long-term strategy to strengthen the supply chain and boost production and supply to mitigate inflationary pressures.

He further stressed that the government needs to ensure that financial aid through various government programs should be implemented effectively. "The different programs of the government providing financial aid should be targeted and it should get into the hands of those who need it the most," Gatchalian said.

The government has proposed a budget allocation of P591.8 billion for 2025 for its various government aid programs.

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Gatchalian hinimok ang economic managers na tumutok sa pagtugon sa inflation para sa 'bottom 30%' ng income households

Hinimok ni Senador Win Gatchalian ang economic managers ng bansa na tumutok sa pagtugon sa inflation para sa tinaguriang bottom 30% ng income households o ang pinakamahirap sa bansa.

Ayon kay Gatchalian, habang malaki ang ibinaba ng headline inflation sa lahat ng income households sa ikalawang anim na buwan ng 2022 hanggang sa unang anim na buwan ng 2023, nananatiling mataas ang inflation sa mga nasa kategorya ng bottom 30% ng income households.

Noong 2022, aniya, ang headline inflation ay umabot sa average na 5.8% kahit na ang inflation rate para sa bottom 30% ay nakapagtala ng mas mataas na 6.6%. Noong nakaraang taon, ang headline inflation sa lahat ng income households ay umabot sa average na 6.0% laban sa headline inflation ng nasa bottom 30% na 6.7%. Ngayong taon, ang headline inflation para sa lahat ng income households sa unang anim na buwan ay nasa 3.6% habang nanatiling mas mataas sa 4.8% ang inflation para sa bottom 30%.

Ang mas mataas na inflation rate ng bottom 30% ng income households ay dulot ng mataas na presyo ng mga food items, ayon kay Gatchalian.

"Ang ating mga kababayan ay napaka sensitibo sa presyo ng pagkain at bigas. Ito ay isang bagay na nais kong bigyang-diin dahil karaniwan tayong tumitingin lamang sa pigura o kung ano ang naitalang headline inflation ngunit malinaw na ang pinakamahirap na bahagi ng ating lipunan ay mas nararamdaman ang epekto nito kumpara sa iba," sabi ni Gatchalian sa isang pagdinig sa Senado.

Ayon sa kanya, kailangan ng pamahalaan na magpatupad ng mga programa na tutugon sa mataas na inflation rate lalong lalo na para sa mga nasa bottom 30% ng income households.

Bilang chairperson ng Senate Committee on Ways and Means, binigyang-diin ni Gatchalian na habang inaasahan na ang planong bawasan ang taripa sa pag-iimport ng bigas ay magpapababa ng presyo ng butil ng bigas, kailangan din ng pamahalaan na magkaroon ng pangmatagalang estratehiya upang patatagin ang supply chain at palakasin ang produksyon at suplay upang hindi masyadong maramdaman ang epekto ng inflation.

Sinabi pa niya na kailangang tiyakin ng pamahalaan na ang tulong pinansyal sa pamamagitan ng iba't ibang programa ng pamahalaan ay maisakatuparan nang epektibo. "Ang iba't ibang programa ng pamahalaan na nagbibigay ng tulong pinansyal ay dapat naaayon sa target na mga benepisyaryo at masigurong napupunta ito sa talagang mga nangangailangan," sabi ni Gatchalian.

Iminungkahi ng pamahalaan ang alokasyon ng pondong P591.8 bilyon sa taong 2025 para sa iba't ibang programa ng pamahalaan na may kinalaman sa pagbibigay ng ayuda.