ALBAY Representative Joey Salceda today lauded February’s 2.1% inflation rate, highlighting a nearly 5% year-on-year decline in rice prices as a particularly positive indicator. He argued this signals an opportunity for more aggressive economic expansion through further interest rate cuts and a more expansionary fiscal policy.
“The better news is that rice prices declined by almost 5 percent year-on-year,” Salceda said in a statement. “I take that as a sign that we can continue with our rate cuts and we can pursue a more aggressive expansionary stance on the fiscal side.”
While celebrating the positive inflation figures, Salceda stressed the importance of continued supply-side initiatives. He emphasized the need for improvements in farm inputs and logistics, particularly for the volatile fruits and vegetables sector, advocating for increased investment in cold storage facilities.
Looking ahead, Salceda outlined several key policy recommendations:
- Improved Port Infrastructure and Inter-Island Trade: He called for the development of more ports and the reduction of costs associated with inter-island trade, suggesting a review of the Cabotage Law’s restrictions on foreign shipping companies.
- Sustainable Fisheries: Salceda highlighted the need to address the declining fish catch through increased investment in aquaculture.
- Infrastructure Development: He emphasized the urgency of initiating the High Standard Highway Network program and securing financing for the Bicol railway project to bolster the country’s transportation infrastructure.
Salceda concluded by stating that addressing food security and efficient food distribution remains crucial for the Philippines’ industrialization. He characterized this as the country’s “most important structural defect.”
