Joey Sarte Salceda

Solon sees lower inflation in February

February 7, 2023 Jester P. Manalastas 347 views

A lawmaker is confident that the country’s inflation rate will surely go down from February onwards.

Albay Representative Joey Salceda said the overall price level in February and every month in 2023 will be lower than 8.7 percent and that vegetable prices, especially onion, will go lower, especially during this harvest season.

However, the chairman of the House committee on ways and means said “fish and eggs will be flavor of the year” for inflation.

“Fish and egg prices will likely remain elevated throughout 2023 unless corn prices and supply improves,” he stressed.

Corn prices have a year-on-year inflation rate of 16 percent, and have continued to accelerate month-on-month by 1 percent.

Salceda noted that “this will drive prices of fish, because corn accounts for 60-70 percent of costs in aquaculture. Every 1 percent increase in corn prices leads to a P2-5 price increase in tilapia prices.”

“Egg is exacerbated by problems in poultry supply and smuggling of frozen chicken, which kills domestic raisers. But egg supply issues are not isolated. Nearby areas like Guam are already experiencing shortages,” he said.

“So, I would repeat my initial suggestion to look into corn tariffs and try to direct as much of it towards increasing production. Imported corn isn’t also cheaper than domestic corn once landed. In fact, in some cases, imported corn is P2 more expensive than domestic corn. So, it should be okay to import,” the solon added.