As inflation slows to 6.3 percent, gov’t to continue fuel subsidies, targeted support

Finance Secretary Benjamin Diokno reiterated the continuation of targeted support for sectors affected by elevated prices of fuel and key commodities and affirmed the government’s commitment to boosting local food production, following the Philippine Statistics Authority’s (PSA) August 2022 inflation report released on September 5, 2022.

“The PSA reported that headline inflation slightly decelerated to 6.3% in August, while year-to-date inflation stood at 4.9%. This is driven by persistent high prices of food and transport,” Secretary Diokno wrote in a series of tweets.

He added that inflation is still expected to remain elevated for the rest of 2022, peaking in the third quarter but slower in the fourth quarter of the year, but that inflation is seen to fall within the 4.5-5.5 percent Development Budget Coordination Committee (DBCC) assumption for 2022.

To help address inflation and its impact, the government has set in place programs to provide targeted support to the most affected and vulnerable sectors.

“Support measures include fuel subsidies for the public transport sector, fuel discounts for farmers and fisherfolk, and social pension for indigent senior citizens,” said Secretary Diokno.

The Secretary also said that the government remains committed to implementing measures to help improve productivity and local production and ensure the adequate supply of food in the domestic market.