Liberalization causing low inflation - NEDA

Here is one good thing that liberalization has brought to the country. The low inflation rate that the country has been experiencing is actually a result of the opening up of the Philippine economy according to National Economic Development Authority Deputy Director General Augusto Santos. Santos said despite liquidity, inflation is “benign" because liberalization and deregulation has caused better competition in the market, thus, tempering the general increases in prices of goods and services. “It’s a source of wonder, despite liquidity there is low inflation. My explanation for that is there is a lot of goods and services available in the market so people have lots of choices," Santos said in a chance interview. Inflation has been going down at 2.6 percent in February to 2.2 percent in March. The Bangko Sentral ng Pilipinas predicts that could be lower in April at 2 percent. For the whole year, the BSP expects average inflation of 3.6 percent, while the Institute for Development and Econometric Analysis pegged it at 3.1 percent. “It’s because of the availability of too many goods and services resulting from liberalization and deregulation," Santos said. - GMANews.TV