Storm disruptions to agriculture ‘short-lived, localized’ – Espenilla

Locals buy vegetables at a local market in Cagayan a day after typhoon “Ompong” made landfall. ABS-CBN NEWS

MANILA – Bangko Sentral ng Pilipinas (BSP) governor Nestor Espenilla said disruptions in agriculture supply due to typhoons tend to be “short-lived and localized” and prices normalize when farmers recover.

Typhoon “Ompong” (“Mangkhut”) pummeled Luzon on Sept. 15, causing P14 billion in farm damage, P8.97 billion of which are to rice crops and P4.5 billion to corn, the Department of Agriculture said.

“From experience, supply disruptions due to typhoon damage tend to be short-lived and localized. Prices normalize when farmers are able to recover and resume production,” Espenilla said in a statement late Monday.

Espenilla said the BSP would review its inflation targets “once more information is available.” Imports compensating for damage will also be considered, he said.

“In any case, we always update our inflation forecast in preparation for each policy review. The updated forecast is an important basis for policy decision,” he said.

The BSP’s policy-setting monetary board will meet on Sept. 27. It raised the overnight borrowing rate by a total of 1 percentage point so far this year, bringing the benchmark to 4 percent.

Consumer prices rose 6.4 percent in August, as damage from monsoon rains drove up prices.

The government had hoped inflation would taper off in September.

SOURCE: Panay News

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