Malacañang downplayed on Tuesday the uptick in inflation rate last month, asserting that inflation level still falls within government target.
Citing the latest data from the Philippine Statistics Authority (PSA), Presidential Spokesman Salvador S. Panelo said the rise in inflation rate to 2.5 percent on December 2019 from the 1.3 percent on November on the same year should not be a cause for alarm.
The National Economic and Development Authority (Neda) attributed the acceleration of inflation rate on December 2019 to the price rise of food and nonfood items caused by typhoons and rising oil prices within the said period.
“It remains well within our target range of 2 percent to 4 percent,” Panelo said.
Panelo, also Chief Presidential Legal Counsel, argued that the latest inflation figure is way below the 6.7-percent inflation of 2018.
Nevertheless, he said, the government economic managers continue “to keep a tight watch over inflation amid emerging global threats.”
On Monday, he admitted the government is now closely monitoring the rising oil prices in the international market amid the prevailing tension between the United States and Iran following the killing of Maj. Gen. Qassem Soleimani, head of the elite Iranian Quds Force.
Panelo said the government is already preparing measures to address the impact of the said development on the prices of basic necessities.