Managing Wage, Fare Hikes Seen Crucial
Managing the demand for transport fare and wage increases will be crucial to containing inflationary pressures, according to Socioeconomic Planning Secretary Romulo L. Neri
He said the reasonable fare hike based on fuel price increase alone is only R0.05 to R0.08 per kilometer.
"Higher cost of spare parts will add R0.22 per kilometer based on the Land Transportation Franchising and Regulatory Board (LTFRB) estimates. Thus, total fare hike should not exceed R0.30 per kilometer or R1.20 for the first 4 kilometers. If the transport fare hike will be managed prudently, wage increases will be tempered," Neri said.
Citing data from the National Statistics Office (NSO), Neri noted that April inflation remains stable at 8.5 percent.
"Year-on-year headline inflation remained at 8.5 percent for the third consecutive month, bringing the January-April average inflation rate to also 8.5 percent," he said.
However, core inflation continued to slow down to 7.8 percent in April from 8.0 percent in March. Core inflation is lower because it excludes prices of volatile items such as rice and fuel, which are the main causes of the increase in headline inflation, said Neri. …