Diokno clarifies Marcos’ inflation remark

MANILA, Philippines — Finance Secretary Benjamin Diokno clarified yesterday President Marcos’ remark that inflation is “not that high,” saying the Chief Executive was referring to the full-year figure of around 4.4 percent.

“The President’s disbelief at the 6.1 percent June 2022 inflation rate figure was misunderstood,” Diokno said in a press briefing at Malacañang.

Diokno said both June 2022 and year-to-date inflation numbers are within forecast range of the Bangko Sentral ng Pilipinas and the Development Budget Coordination Committee (DBCC), with BSP’s June forecast being 5.7 to 6.5 percent.

The full-year forecast, meanwhile, is at 3.7 to 4.7 percent based on the DBCC’s macroeconomic assumptions as of May 24, 2022, he said.

Diokno also agreed with Marcos that the current high inflation rate for June is a problem not only in the Philippines but everywhere.

“Among our peers, Indonesia’s overall inflation climbed to 4.4 percent in June from 3.6 percent in May. Meanwhile, Thailand’s inflation rate increased to 7.7 percent in June from 7.1 percent in May. Inflation in the Euro zone stood at 8.6 percent in June, the highest in 11 years. Meanwhile, the United States’ inflation rate in May reached a 40-year high of 8.6 percent,” Diokno said.

He said the uptick in the June 2022 inflation rate was driven by faster price adjustments in operation of personal transport equipment; electricity, gas and other fuels; and meat and other parts of slaughtered land animals.

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