Manila:The government is set to bolster agricultural production and logistics while offering targeted aid to sectors impacted by rising energy costs, as announced by the Department of Economy, Planning, and Development (DEPDev) on Thursday.
According to Philippines News agency, this initiative comes after the country's headline inflation increased to 7.8 percent in October from 7.2 percent in September, driven primarily by heightened energy and transport costs. Transport inflation notably climbed to 20.1 percent from 14.6 percent in the previous month.
The rise in prices of housing, water, electricity, gas, and other fuels, which escalated to 9.3 percent in October from 8.4 percent in September, has also contributed to the inflation surge. Conversely, food inflation decelerated to 6.4 percent from 6.8 percent, aided by favorable weather conditions and improved supply chains.
DEPDev highlighted that to mitigate these pressures, the Department of Agriculture (DA) has expanded support programs through the Rice Competitiveness Enhancement Fund (RCEF). This fund provides farmers with certified seeds, farm machinery, training, and credit assistance to enhance productivity and strengthen the domestic rice supply. Additionally, the DA is increasing KADIWA ng Pangulo outlets and direct marketing initiatives to link producers with consumers, aiming to make food more affordable.
As of October 21, the DA had already disbursed PHP11 billion in production support, indemnification assistance, cash aid, and other interventions to aid farmers and fisherfolk. To alleviate the impact of soaring fuel costs, the government has also initiated a PHP3 billion fuel subsidy program for approximately 300,000 farmers, fisherfolk, and agricultural delivery-truck drivers.
Furthermore, the Department of Energy (DOE) is working to ensure a sufficient power supply amid El Niño conditions by enhancing generation capacity and speeding up the deployment of energy storage systems. The Energy Regulatory Commission (ERC), in collaboration with the DOE, temporarily suspended the Wholesale Electricity Spot Market (WESM) Reserve Market to help control ancillary service costs that have led to higher electricity rates, particularly in the Visayas.
The government, through the Inter-Agency Committee on Inflation and Market Outlook and in partnership with the Bangko Sentral ng Pilipinas, continues to monitor price developments and align policy responses to emerging inflation threats. DEPDev Secretary Arsenio Balisacan emphasized the ongoing efforts to strengthen targeted interventions, improve supply, and provide relief to vulnerable sectors, asserting that these measures are crucial for easing price pressures, protecting purchasing power, and enhancing resilience against external shocks.
