MANILA — Addressing elevated inflation, which hit 7.7 percent in October, is the top priority of President Ferdinand Marcos Jr.'s economic team, Finance Secretary Benjamin Diokno said on Friday.

The October inflation, driven by higher costs of select food items, is way beyond the 2 to 4 percent government target.

“Addressing high inflation is the number one priority of the economic team," Diokno said in a statement.

Aside from local supply issues, inflation is also affected by the global energy crisis due to Russia's invasion of Ukraine, the aggressive interest rate adjustments by the US Federal Reserve and the slowdown of China's economy.

"Although inflation is expected to remain elevated for the rest of the year with the impact of severe tropical storm Paeng on food supply and persistent global supply chain issues, the government will help ensure that inflation will be on a target-consistent path over the medium term with the implementation of direct measures to address supply shocks,” he added.

• Inflation quickens further to 7.7 percent in October, highest in nearly 14 years
• Marcos says reining in inflation is administration's top priority

Food and non-alcoholic beverages inflation reached 9.4 percent in October from 7.4 percent in September 2022.

Analysts have said it could get even higher in the next month due to seasonal increase in economic activities during the holidays and the impact of weather disturbances on crops.

Diokno said mitigating measures imposed by the government include improving local production, timely importation of key commodities and raw materials, and improving distribution efficiency and energy security.

The government is also continuously offering support for the most vulnerable sectors.

The economic team is also working on the extension of Executive Order No. 171, which reduced the Most Favored Nation (MFN) rates on pork, rice, corn, and coal.

A public hearing is set on Nov. 9.

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