Statement of Senator Win Gatchalian on the March 2019 Inflation Rate

Despite the increase of pump prices and the persisting dry spell that destroyed P5 billion worth of agricultural crops, the country's headline inflation has eased further to 3.3%. The latest inflation rate is much lower than our own estimates, which we pegged at around 3.7%, and better than the median rate forecast of economists, which is around 3.5%.

The low inflation rate will once again provide more flexibility to the Bangko Sentral ng Pilipinas to make adjustments on the country's policy rates to spur economic growth. It would be recalled that the BSP Monetary Board kept the benchmark interest rate high at 4.75%.

Meanwhile, the government should extend economic assistance to farmers affected by the El Nino to ensure food security in the country in the coming months and manage the country's inflation. The National Disaster Risk Reduction and Management Council reported this week that at least 164,672 farmers in four provinces and 24 towns have been grappling with the dry spell.