Philippines strives to curb inflation

Illustrative image. (Photo: Star)

Hanoi (VNA) - Philippine President Ferdinand Marcos Jr. has approved the recommendation of the economic ministry to extend tariff reductions on rice and other food items until the end of next year to curb inflation.

According to the Philippine Presidential Office, the modified rates approved in 2021 were set to expire at the end of this year, but inflation rate running at 14-year high warranted an extension of the tariff deferral until December 31, 2023.

That means the tariff rate on imported rice will stay at 35%, while the import levies on corn and pork products will remain at 5%-15% and 15%-25% respectively, the office said in a statement on December 18.

The tariff on coal imports, a key fuel in power generation, will remain at zero until the end of next year, but will be reviewed regularly.

Economic Planning Secretary Arsenio Balisacan said that through this policy, they shall augment their domestic food supplies, diversify sources of food staples, and temper inflationary pressures arising from supply constraints and rising international prices of production inputs.

Consumer price inflation in November was 8.0%, well above the Philippine central bank's 2%-4% target range for this year and the medium term.

Soaring inflation has prompted the central bank of the Philippines to raise interest rates seven times this year and plan for further tightening in 2023 to bring inflation back to its target.

Balisacan said the country is determined to steer its economy to meet the 6.0%-7.0% economic growth target for 2023./.