Manila May 3 (Reuters) – A wage hike above the Philippine central bank’s assumed increase for this year may put more pressure on consumer prices, but inflation is likely to be more moderate next year, Governor Amando Tetangco said on Tuesday.
The central bank assumed a wage hike of 25 pesos ($0.58) to the existing daily minimum wage of 404 pesos in Manila when it raised rates by 25 basis points at its last policy meeting in March. That rate hike was the first since the global financial crisis.
If the actual increase will be more than 25 pesos, “that will have inflationary implications over and above what we have assumed. Now, we will have to assess the impact of that,” Tetangco told reporters.
Labour groups are seeking a salary increase of 75 pesos in the daily wage of private sector workers in the capital.
The wage board in the capital started its public hearings on the salary hike petition on Monday and is expected to be ready with a final decision on the increase next week after President Benigno Aquino ordered all wage boards to fast-track their decision process. [ID:nL3E7G1013]
NEW FORECAST
Tetangco said a new inflation forecast for 2011 would be announced on Thursday. Policymakers previously said average inflation this year could come near the upper end of the government’s target range of 3 to 5 percent, which is also the target for 2012.
Tetangco said inflation next year was still seen falling below the midpoint of the central bank’s target range.
Monetary authorities are widely expected to deliver another quarter-percentage-point rate hike at its rates meeting on Thursday, hours after official April inflation data is released.
Analysts expect annual inflation to have risen to 4.4 percent in April, a one-year high, and near the top end of the central bank’s forecast of 3.7 to 4.7 percent.
Fighting inflation has been at the centre of central bankers agenda around the world, with some responding by raising rates aggressively. The Philippines was the last major economy in Asia to hike its policy rates in March after the global financial crisis.
Policymakers have said the inflation rate could exceed 5 percent in the coming months before tapering off, and that they were ready to take further action to tame price pressures.
($1 = 42.8 Philippine Pesos) (Writing by Rosemarie Francisco; Editing by Richard Borsuk)
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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