28 May 2023 – Marcos forms inter-agency body on inflation, market outlook

BY ARGYLL CYRUS GEDUCOS
May 28, 2023 07:35 AM

The Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) will serve as an advisory body on measures that would keep inflation, particularly of food and energy, within the government’s inflation targets.

The Economic Development Group (EDG) shall harmonize, coordinate, complement, and synergize efforts to ensure the country’s rapid, inclusive, and sustained growth.

President Ferdinand “Bongbong” Marcos Jr. has issued an executive order (EO) to directly address inflation and enhance initiatives to improve the economy and the quality of life of Filipinos.

EO No. 28, signed by Executive Secretary Lucas Bersamin on May 26, orders the creation of the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) that will serve as an advisory body to the Economic Development Group (EDG) on measures that would keep inflation, particularly of food and energy, within the government’s inflation targets.

“In view of the increasing prices of key commodities, particularly food and energy resources, the creation of an advisory body to the EDC, tasked to directly address inflation, will strengthen the EDC and reinforce existing government initiatives aimed to improve the economy and the quality of life of the Filipino people,” the EO read.

The EO also reorganizes and renames the Economic Development Cluster (EDC) as the Economic Development Group (EDG) as “there is a need to reorganize the EDC to ensure that the integration of programs, activities, and priorities toward sustained economic growth remains efficient and effective.”

The IAC-IMO will be chaired by the National Economic and Development Authority (NEDA) Secretary, with the Finance Secretary serving as co-chair. The Department of Budget and Management (DBM) Secretary will act as the body’s vice-chair.

In addition, the secretaries of the following agencies will be members of the IAC-IMO:

Department of Agriculture (DA)
Department of Energy (DOE)
Department of Science and Technology (DOST)
Department of Trade and Industry (DTI)
Department of the Interior and Local Government (DILG)

The advisory body is tasked to closely monitor the main drivers of inflation, particularly food and energy, and their proximate sources and causes. It shall also assess the supply-demand situation for essential food commodities during the cropping period, allowing periodic updating as new information becomes available.

Moreover, the IAC-IMO shall assess the possible impact of natural and man-made shocks on the supply of essential food commodities and regularly monitor the data necessary to assess food prices and supply and demand.

The IAC-EMO is also tasked to facilitate regular and efficient data sharing among concerned agencies to effect timely supply and demand situation analysis; monitor global, regional, and domestic developments and issues that may affect prices: and provide timely recommendations to the EDG and relevant agencies on measures to curb price spikes and promote food security based on ex-ante supply and demand analysis.

Under the EO, the IAC-IMO must submit a report to the EDG of the country’s food and energy supply and demand situation and outlook every quarter or as the circumstances may require.

The report shall include recommendations on short, medium, and long-term measures to manage inflation.

The IAC-IMO shall also formulate and maintain a dashboard containing relevant information on prices and the supply and demand for food and energy commodities.

EDG functions

Meanwhile, the EO states that the EDG shall harmonize, coordinate, complement, and synergize efforts to ensure the country’s rapid, inclusive, and sustained growth.

The EDG is tasked to promote an environment conducive to private enterprises’ growth and competitiveness and create jobs that will empower people and provide them with opportunities to rise above poverty.

It must also improve farms, rural enterprises, and trade policies vital to achieving food security and more equitable economic growth, mitigate inflation, and ensure food and energy security while balancing the interests of producers, consumers, and the economy.

The EDG is also mandated to undertake research and development that are relevant to and supportive of the requirements of micro, small, and medium-scale enterprises and national industries; improve national productivity and competitiveness of domestic products and services; and ensure deep and wide distribution of economic opportunities and benefits to the Filipino people.

The Finance Secretary would head the group, with the NEDA Secretary as Co-Chair. Other members of the EDG are the following:

Head of Presidential Management Staff
DA Secretary
DBM Secretary
DOE Secretary
DILG Secretary
DOST Secretary
DTI Secretary
Department Information and Communications Technology Secretary
Department of Labor and Employment Secretary
Department of Public Workers and Highways Secretary
Department of Transportation Secretary
Department of Tourism

To avoid duplication of efforts and forum shopping, the EO stated that the EDG shall defer to the NEDA Board on matters within its primary purview and inter-agency committees under EO No. 230.