Philippine Economy Talk

[uls]

btw i do agree that the rice problem is self inflicted

and rice is a very large component of CPI market basket that's why inflation took off like a rocket

but other inflation drivers like high oil price, strong dollar are beyond our control

just reminding everyone the Federal Reserve is on a rate hike path

higher interest rates attracting dollars back to the US (dollars that went to seek higher returns overseas)

resulting in $$$ scarcity in emerging markets

so stronger dollar vs EM currencies

[uls]

Here's how the government analyzed the inflation scenario. His economic managers must have been feeding him the wrong info or they have simply given up hope they are blaming it on trump.

Duterte: 'Inflation is because of Donald Trump' | Philstar.com

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From the article above:

Economic managers attributed the record-high inflation in August to higher electricity, gas, fuels, fish, rice, personal transport, vegetables and meat prices.

^^^

YEP

Duterte, however, believes the US has something to do with the rising commodity prices.

“Inflation is dahil ‘yan kay Trump. When Trump raised yung mga tarrif niya, pati banned other items, nagkaloko-loko," the president said during a meeting with Filipinos here.

Duterte did not explain how the US trade policy affected Philippine prices. He made the statement after the US slapped tariffs on several Chinese goods because of the alleged intellectual property violations of China, a major trading partner of the Philippines.

^^^

NO

Trump's higher taxes on Chinese goods cause price increases on those goods inside the US

Syempre US importers pay higher taxes sa customs nila

so when those products appear on US store shelves mas mataas ang presyo

that has nothing to do with our inflation

[boybi]

NO

Trump's higher taxes on Chinese goods cause price increases on those goods inside the US

Syempre US importers pay higher taxes sa customs nila

so when those products appear on US store shelves mas mataas ang presyo

that has nothing to do with our inflation

Shouldn't the US tariffs on Chinese goods result in cheaper imports into Philippines from China? China will dump their goods somewhere else if they can't bring them to the US.

[Monseratto]

btw i do agree that the rice problem is self inflicted

and rice is a very large component of CPI market basket that's why inflation took off like a rocket

but other inflation drivers like high oil price, strong dollar are beyond our control

just reminding everyone the Federal Reserve is on a rate hike path

higher interest rates attracting dollars back to the US (dollars that went to seek higher returns overseas)

resulting in $$$ scarcity in emerging markets

so stronger dollar vs EM currencies

Money that was supposed to subsidies low cost rice was used differently than what it was progammed by Congress...engot yung taga NFA.

NFA chief admits fund diversion for debt payment | Inquirer News

[uls]

Shouldn't the US tariffs on Chinese goods result in cheaper imports into Philippines from China? China will dump their goods somewhere else if they can't bring them to the US.

i really don't know if the Philippines imported more products from China after Trump's tariffs on Chinese goods

depende parin sa importers natin if there's increased demand from customers

even if Chinese companies have tons of inventory and pushing it to PH importers

it's still the decision of PH importers kung bibili or not which depends on local demand

theoretically if heavily discounted Chinese goods flood the PH it's a deflationary force (bring down inflation)

[uls]

if any importer is allowed to import rice it can bring down the price of rice very quickly

which can arrest runaway inflation

[uls]

Money that was supposed to subsidies low cost rice was used differently than what it was progammed by Congress...engot yung taga NFA.

NFA chief admits fund diversion for debt payment | Inquirer News

yeah and i heard on DZMM kanina NFA buying price for palay is too low

sino farmer gusto magbenta sa NFA when commercial millers will buy at higher price

[2lits17]

how about the bukbok rice. i feel na hinde yan dahil sa storage and ulan, siguro from the port of origin palang infested na yan or luma na yun stock nila so pag dating sa atin na aggravate nalang. baka nga they buy it very cheap then they pag the cost. so money in their pockets. then now they want to import more rice then more money on their pocket.

i saw a news that there is a rice warehouse that was being raid and saw two bodega full of imported rice from China. it might be fake rice though. kaduda ang origin. but if its good rice after testing by the super bright NFA they why not confiscate it and sell it to the poor as NFA rice.

Du30 keeps on giving threat to rice hoarders and importers pero wala naman siya ginagawang action.

[Monseratto]

Yields on government securities climb as inflation picks up to fresh peak in Aug.

GOVERNMENT securities’ (GS) yields rose across-the-board last week after the release of surprising August inflation print, which could bolster the case for another rate hike by the central bank in its upcoming policy meeting.

Bond prices dipped as GS yields went up by an average of 42.19 basis points (bps) week on week, data from the Philippine Dealing & Exchange Corp. as of Sept. 7 showed.

Analysts attributed this increase to the faster-than-expected August inflation figure.

[dr. d]

yeah and i heard on DZMM kanina NFA buying price for palay is too low

sino farmer gusto magbenta sa NFA when commercial millers will buy at higher price

i find it ironic, that government is trying to make life more affordable for the filipino, except for the filipino whose toil literally feeds us.
matagal nang pinagsasamantalahan ng gubyerno ang magsasaka.
my feeling is, if the farmer is treated well, there will be more farmers and we wouldn't be in this self-generated state of rice-lessness.

instead of importing and making the importer richer, we should be buying rice at higher price, from our own farmers.
make it profitable for farmers, to be... farmers!
otherwise, all we will have, are subdivisions and malls.