The National Economic Development Authority (NEDA) announced on Thursday that the inflation rate in the country is currently declining this year.
NEDA Chief Arsenio Balisacan stated during a press briefing in Malacanang that they are actively monitoring the situation and implementing measures to ensure that the inflation rate reaches its target.
"We are actively monitoring the situation and implementing the necessary measures to ensure that by the end of the year, we should be on our target of roughly around 4% and at 3.5%. So we are on a downward trajectory already," Balisacan said.
He also clarified that a slight depreciation of the Philippine peso does not necessarily harm the economy, as it can improve competitiveness for local producers and exporters.
"I think there are a lot of misconceptions about the weakening peso. When the peso depreciates, a bit not too much, because too much depreciation will cause instability and that could prevent investment," he added.
He emphasized the importance of maintaining a stable exchange rate to promote investor confidence and facilitate decision-making.
"So the trick is to prevent sharp changes in those exchange rates because when you have that kind of world, it’s difficult to make decisions and therefore, investors will postpone their decisions… because they are not quite sure what the economic conditions are," the NEDA chief added.
According to government data, the inflation rate for March 2023 has further eased to 7.6%, which falls within the forecast of the Bangko Sentral ng Pilipinas and is lower than private analysts' estimates of 8.1%.
