Pressure on the government to raise the minimum wage and grant higher fares to the transport industry will cause inflation to overshoot government targets, ING Bank-NV Manila Senior Economist Nicholas Antonio T. Mapa said in a note. READ:
The looming increase in wages and fares, which are known as second-round effects after the prices of basic commodities like fuel and food rise, strengthens the case for inflation breaching the government’s 2-4% target band for a second straight year, Mr. Mapa said.
As oil prices continue to surge in response to the Russia-Ukraine war, petitions to increase the minimum fare are currently under review. A labor group has also urged the government to increase daily wage in Metro Manila by as much as P470.“Although private transport costs roughly 3% of the consumer price index basket, the sustained trudge higher of energy products is likely to ripple through to the rest of the consumer basket and more importantly on the Filipino consumer’s psyche,” he said.
Mr. Diokno has said inflation could hit 4.7% under a scenario where the Dubai crude price, the benchmark for Asia, averages $140 per barrel this year. Dubai crude was $104.38 per barrel on Tuesday, according to Bloomberg. Last month, the central bank raised its inflation forecast to 3.7% from 3.4% previously amid the surge in oil prices.
“With energy costs and the price of staples on the uptrend, we are seeing how countries are making a mad dash to secure stable supplies, with surging wheat prices driving a 20% increase in the cost of rough rice on the global markets,” Mr. Mapa said.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Nomura cuts PHL growth forecast to 6.3% due to inflation - BusinessWorld OnlineNomura Global Markets Research said it downgraded its growth forecast for the Philippines to 6.3% from 6.8% due to the expected impact of inflation caused by the Russian invasion of Ukraine. READ:
Baca lebih lajut »
War, pandemic, and inflation deal Fed a complex trifecta - BusinessWorld OnlineWASHINGTON — In what now seem the simpler days of December, when there was only a pandemic to worry about, Federal Reserve officials rallied around the view they could tame inflation with modest interest rate hikes while the economy and labor market thrived.
Baca lebih lajut »
Muntinlupa City Council approves P1 tricycle fare hike amid fuel price increaseThe Muntinlupa City Council has approved an ordinance granting the request of tricycle operators and drivers in the city to increase fare by P1.
Baca lebih lajut »
No talks yet on MRT3 fare hike despite fuel price increases, exec says“Wala po tayong pinag-uusapan na pagtaas ng pamasahe. Never pa po &39;yang pinag-usapan namin. Ang importante tulungan muna natin &39;yung mga pasahero natin. Huwag na tayong maging pabigat pa. So far wala kaming pinag-uusapang ganyan,” MRT3 director for operations Engr. Mike Capati told Dobol B TV.
Baca lebih lajut »
Manila fifth most expensive city in ASEAN in terms of premium office space occupancy costs - BusinessWorld OnlineManila fifth most expensive city in ASEAN in terms of premium office space occupancy costs READ:
Baca lebih lajut »
Limited ties to Russia, Ukraine may minimize war impact on PHL - BusinessWorld OnlineTHE RUSSIA-UKRAINE crisis may have a less severe impact on the local economy due to the country’s limited exposure to both countries, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said. READ:
Baca lebih lajut »