PHILIPPINE INFLATION PREDICTED TO RISE
The Philippine 1987 inflation rate will
rise to 4.8 pct from 0.74 pct in 1986 if the government
implements an employers' association recommendation for a 10
pct increase in the 54 peso minimum daily wage this month,
Economic Planning Secretary Solita Monsod said.
    The government's own proposal for an across-the-board daily
pay rise of six pesos for non-agricultural workers and eight
pesos for agriculture workers, would push the full year average
higher to 5.4 pct, she told the Senate last week.
    The 10 pct rise in the minimum wage is recommended by the
Employers Confederation of the Philippines (ECOP).
    The ECOP proposal would push the year-on-year inflation
rate to 11.6 pct in December compared with the predicted 14.4
pct if the government's recommendation is implemented, Solita
said. Both were proposed last month.
    Annual inflation for 1987 was forecast at four to 4.5 pct
by the National Economic and Development Authority early this
month.
    In the first three months of the year, inflation was a
negative 0.5, 0.6 and 0.7 pct respectively, rising to 1.0, 2.5
and 4.6 pct in April May and June, the National Statistics
Office said.
    The annual inflation rate rose to 5.8 pct in June, 6.2 pct
in July and 6.15 and 6.188 pct in August and September
respectively, the National Statistics Office said.
    It attributed the acceleration to higher fuel and water
prices.
    The government's six and eight peso wage increases would
displace up to 20,000 workers, Monsod said, bringing the number
of unemployed to 4.2 mln or 19.2 pct of the population.
 REUTER
