MANILA, Philippines – Budget Secretary Benjamin Diokno said on Tuesday, October 2, that hitting a 6.8% inflation rate “won’t make a big difference” now.

In an ANC Headstart interview, Diokno said that economic managers estimate the increase of prices of goods to climb up to 6.7% in September.

The latest figure is set to be announced this Friday, October 5.

“The Department of Finance says 6.4%. BSP (Bangko Sentral ng Pilipinas) says 6.7%. I say wait let’s just wait this Friday. Our expection is that inflation will peak this September,” Diokno said.

Regardless, Diokno said that past administrations “experienced worse.”

“6.4% and 6.8% [inflation rate] are both possible. We’ve seen higher inflation in the past. It won’t make a big difference,” the budget chief said.

Under the administration of former president Corazon Aquino, Diokno said that price hike for goods peaked at 21.2% in August 1991. Former president Fidel Ramos was at 13.9% in February 1994, Joseph Estrada at 19.7%, and Gloria Macapagal Arroyo at 10.5%, Diokno added.

He said that the average increase in the prices of goods under the Duterte administration “is not bad,” considering almost doubled prices of oil.

Inflation surged to 6.4% in August, reaching another 9-year high since March 2009. It exceeded median estimate at 6%, coming from July’s 5.7%.

Diono said that inflation will eventually taper off and be back within the 2% to 4% range next year.

Missing growth targets

The budget chief also said that the government’s gross domestic product (GDP) target of 7% to 8% this year will be missed. The GDP slowed down to 6% in the 2nd quarter of 2018.

“Had it not been for the high prices, we couldve grown 7% because it was already corrected for inflation. Realistically, that’s maybe out of prints, even the lower bound, 7 percent. We’re probably shooting for 6.7 or 6.9 percent but not 7 to 8 percent,” Diokno said.

Asian Development Bank also slashed its economic growth outlook for the Philippines for this year – to 6.4% from 6.8%, as inflation continues to rise.

Diokno said that adopting policies on lifting tariff barriers for rice and sugar will help the government pick up from inflationary pressures. – Rappler.com