Government closely watching inflation rate, says Palace

October 10, 2014 9:57 am 

MANILA, Oct. 9 — The Palace on Thursday assured that the government's economic team and the central bank are closely monitoring the country's inflation rate to control its impact on the people.

Presidential Communications Operations Office Secretary Herminio Coloma, Jr. said such economic issues as inflation, poverty, and job creation are gut-level issues that make the people look to the government for help.

"Sikmura kasi talaga ‘yan kaya siguro nandoon na rin ang aspeto ng higher expectations among our people, how they wish government can really be more effective," Coloma told reporters during a press briefing.

"Pero doon sa aspect na ‘yan, maipupunto natin na talaga namang tinututukan ito ng ating economic management team at maging ng Bangko Sentral ng Pilipinas."

He noted that although the government has been able to reduce the inflation rate from a high of 4.9 percent to 4.4 percent, the central bank is still keeping track of inflation.

The Bangko Sentral ng Pilipinas, he said, is the lead agency in tackling inflation, having all the tools of monetary policy to regulate inflation as well as the total liquidity in the banking system and other indicators.

"Sila ay nasa posisyon para tuwirang masabat ‘yung threats of inflation at pinagtutulungan naman iyan ng ating economic management team at ng Bangko Sentral," he added.

On the people's purchasing power, Coloma said the main goal of the government is to maintain a manageable inflation rate to avoid the erosion of the consumers' purchasing power.

To address this concern, the government is monitoring and regulating the prices of commodities through the National Price Coordination Council, he said, adding that the government wants to ensure a reasonable movement of prices of basic commodities for the benefit of the consumers.

Coloma said that with regards to salary adjustments, the government is carrying out a performance-based incentive program to augment the compensation of government employees who are performing well.

He however said that it is up to private companies to share their gains with their employees, especially when these companies post higher profits under better economic conditions. (PNA)

LAM/PND/UTB

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