The Bangko Sentral ng Pilipinas (BSP) supports the initiatives of the National Government (NG) to boost the supply of key food commodities and address supply-side pressures exacerbating inflation.
The overall supply of agricultural commodities continues to be restricted by low farm productivity and high production costs, worsened by global supply disruptions, persistent animal diseases, uncertainties due to the Ukraine-Russia conflict, and tariff and non-tariff restrictions on agricultural trade.
Addressing high inflation requires a whole-of-government approach to protect vulnerable sectors of the economy from the impact of high prices. Targeted measures by the NG to improve farm productivity and address bottlenecks for key food items are crucial in mitigating supply-side pressures on inflation. The central bank’s monetary policy actions are also working in tandem with fiscal policy and programs to prevent inflation expectations from becoming more entrenched.
The BSP remains vigilant in monitoring all risks to the inflation outlook and is prepared to take all necessary monetary policy action to bring inflation toward a target-consistent path over the medium term, and in turn, steer the economy toward a sustainable growth path. ###