MANILA (Reuters) – Philippine President Ferdinand Marcos Jr has approved the suggestion of the economic ministry to increase as much as the top of next 12 months lower tariff rates on rice and other food items to assist combat inflation, his office said on Sunday.
The modified rates approved in 2021 were resulting from expire at the top of this 12 months, but an inflation rate running at 14-year highs warranted an extension of the tariff reprieve until Dec. 31, 2023.
Which means the tariff rate for imported rice will stay at 35%, while the import levies on corn and pork products will remain at 5%-15% and 15%-25% respectively, the press secretary’s office said in a press release.
The tariff for coal imports, a key fuel in power generation, will remain at zero beyond the top of next 12 months, but will likely be reviewed frequently.
“Through this policy, we will augment our domestic food supplies, diversify our sources of food staples, and temper inflationary pressures arising from supply constraints and rising international prices of production inputs,” Economic Planning Secretary Arsenio Balisacan said within the statement.
At 8.0% in November, consumer price inflation is well beyond the Philippine central bank’s goal range of two%-4% for this 12 months and the medium term.
Soaring inflation has prompted the Bangko Sentral ng Pilipinas (BSP) to boost rates of interest seven times this 12 months and flag more tightening in 2023 to bring inflation back to inside its goal.
“We’re determined to steer the Philippine economy to fulfill the 6.0%-7.0% economic growth goal for 2023,” Balisacan said.
(Reporting by Karen Lema; Editing by Christopher Cushing)
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