The Philippines will likely experience a “weak to moderate” El Niño later this year through early-2024 that’s not expected to fan food inflation, its finance chief said.
(Bloomberg) — The Philippines will likely experience a “weak to moderate” El Niño later this year through early-2024 that’s not expected to fan food inflation, its finance chief said.
“We do not expect a significant reduction in local production especially for rice and corn,” Finance Secretary Benjamin Diokno said at a media briefing Friday. “As a result, we don’t see a surge in food prices.”
The El Niño phenomenon — which occurs when the equatorial Pacific warms, disrupting weather patterns — is however still projected to cause a 1.8% decline in rice output and 1% drop in yellow corn production, based on estimates provided by Diokno.
El Nino Watch Called as Odds Grow of Weather-Shifting Event
Inflation in the Southeast Asian nation remains elevated, while economic growth moderated last quarter. The central bank held its key rate last week, flagging the potential impact of El Niño to food and utility costs as a risk to inflation outlook.
To mitigate the weather phenomenon’s impact, the Philippine government will aid farmers, stock up on farm input, and promote early planting in areas with low water supply, Diokno said.
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