The Philippines is looking at modernizing the agriculture sector and seeking a whole-of-society approach to combat the continuous increase in consumer prices, with inflation the highest among ASEAN countries in January.

Inflation hit a fresh 14-year-high of 8.7% in January, the fastest since the 9.1% recorded in November 2008. The acceleration was attributed to higher prices of housing, water, electricity, gas, and other fuels.

Based on data compiled by GMA News Research, the Philippines‘s latest inflation rate outpaced other ASEAN countries that have reported data so far -  Indonesia was at 5.28%, Thailand at 5.02%, and Vietnam was at 4.89%.

“The thrust to improve productivity in the agriculture sector and ensure energy security will help stabilize inflation moving forward,” Finance Secretary of Philippines Benjamin Diokno said in a statement.

Diokno said the government would also continue the distribution of organic and bio-N fertilizers, quality seeds, seedlings, farm production, and post-harvest machinery and equipment.

Whole-of-society approach

According to National Economic and Development Authority (NEDA) of Philippines Secretary Arsenio Balisacan, the government was looking at a whole-of-society approach in modernizing agriculture and agribusinesses.

Balisacan said the Philippines government and the private sector needed to work hand-in-hand to enhance the efficiency of agriculture, forestry, and fisheries in production.

“A robust and resilient agriculture is vital to ensuring that we have enough supply of food and to keeping food prices stable, especially as we continue to face global headwinds and are exposed to natural hazards. Importantly, it serves as foundation for a strong economy, as agricultural products move up the value chain,” he said in a separate statement.

“Our measures are meant to balance the interests among local food producers, consumers, and the overall economy,” he added.

For its part, the Department of Budget and Management (DBM) of Philippines said this year’s general appropriations act (GAA) of Philippines had allocated over P151 billion to continue the major social protection service programs of the Department of Social Welfare and Development (DSWD) of Philippines.

“Social protection programs have been designed to be efficient and targeted, preventing wastage of resources and varying according to the sources of shocks and causes of emergencies,” the DBM said separately.

The department said some P6.46 billion had been allocated for the Sustainable Livelihood Program (SLP), P5.2 billion for the Supplementary Feeding Program, P36.82 billion for the Protective Services for Individuals and Families in Difficult Circumstances, and P102.61 billion for the Pantawid Pamilyang Pilipino Program (4Ps).

“Indeed, regular subsidies to marginalized sectors remain a major component of the budget,” the DBM said.

“These serve as means to ensure continued access to markets and public services and help them uplift the quality of their lives,” it added.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) said that the latest inflation data indicated the need for sustained efforts to combat price pressures, particularly non-monetary government measures.

“The BSP remains focused on restoring inflation to the government target and stands ready to adjust its monetary policy settings as necessary to anchor inflation expectations and safeguard the inflation target over the policy horizon,” it said in a separate statement.