Rein in inflation, GMA tells economic managers

President Arroyo has ordered economic managers to implement measures to contain the inflation rate below the target in order to sustain growth objectives.

Deputy Presidential Spokesman Anthony Golez said the order was directed to Acting Socioeconomic Planning Secretary Augusto Santos, Trade and Industry Peter Favila and Finance Secretary Margarito Teves.

“The strong peso has cushioned the effect of rising fuel costs on the economy, but we must ensure that cost of basic consumer commodities are monitored so as not to allow inflation to spiral out of control,” Golez quoted Mrs. Arroyo as saying.

For 2008, Santos said the Development Budget Coordinating Council (DBCC) set the inflation rate target at “four percent plus or minus  one percentage point on account of rising prices of oil and non-oil commodities in the international market; possible upward adjustments in transport fares, utilities and wages; possible occurrences of weather-related disturbances affecting supply; and growth in domestic liquidity brought about by continued heavy inflows of foreign exchange.”

The National Economic and Development Authority reported recently that the inflation rate for 2007 was at 2.8 percent, below the target of four to five percent.

Santos said in a memo to the President that “full year 2007 headline inflation rate reached 2.8 percent, down from 6.2 percent in 2006.”