MANILA based 123 Finance Corporation says upward inflation pressures aggravated by expensive oil will increase migration workers abroad.

MANILA, Philippines, June 13, 2022 /PRNewswire/ -- Inflation in the Philippines rose further from 4.9 percent in April 2022 to 5.4 percent in May 2022 compared to the 2.9% from January 2022. This rapid increase is unusual compared to the yearly 3.9 % and poses a risk to consumer's spending behavior. The inflation rate forecast by Bangko Sentral ng Pilipinas' (BSP) of 5.0 to 5.8 percent for the month is within the range as predicted.

The National Economic and Development Authority (NEDA) of the Philippines highlights the issuance of Executive Order (EO) No. 171 and the government's fuel subsidy program in helping to ease the impact of global inflationary pressures. Even though drastic measures are taken it seems that there has been a sharp increase in Overseas Filipino Workers (OFWs) seeking work and greener pastures abroad since Jan 2022.

Socioeconomic Planning Secretary Karl Kendrick T. Chua said: "The Russia-Ukraine conflict has disrupted the global supply chain and elevated commodity prices, particularly for fuel. We have seen how a single crisis can set us back, so the Duterte administration has pursued both short- and long-term interventions to increase the resilience of our domestic economy against external shocks."

Since Monday, 28 March 2022, the Philippine oil prices begun rapidly raising as an expansion of the as Russia-Ukraine war rages in the Balkans. According to Foreign Affairs Secretary Teodoro Locsin the Philippines backed Russia's global isolation, and supports China as main mediator. Oil and Gas prices rose by P3.40 per liter for gasoline and by P8.65 for diesel with no end in sight. This trend is expected to hit the local consumers very hard and reduce expenditure by the local household rapidly.

Recently The Philippines lawmakers Foreign Affairs Secretary Teodoro Locsin Jr. said at a meeting with United States President Joseph Biden Jr. that he believes that the global isolation of Russia will serve only to weaken the three major resolutions that have already established the illegality and indecency of the latter's attack on Ukraine, as Manila voiced support for China as a "credible" mediator in the conflict.

Ukraine supplies a great deal of the world's corn, its wheat, its oil seeds and to wean itself off of Russian energy, whether that's oil or ultimately gas could become a huge error on the western partners part.

Short supply of food items like pork, fish and corn would add to upward inflation pressures aggravated by expensive oil wrought by Russia's invasion of Ukraine, the state planning agency National Economic and Development Authority (Neda) said.

Manila-based 123 Finance Corporation, a securities approved financing firm listed among the official Philippines financing companies, with a Certificate of Authority (CA) is currently facilitating more than 51% of the Overseas Filipino Workers (OFWs) in foreign countries such as Hong Kong and Saudi Arabia. Currently one in three Filipinos uses the services of a multifunctional loans to facilitate both education and working abroad today to finance their families in Philippines due to the high living cost and low income in Philippines. The Philippines has seen an increase in demand for migrant workers loans since the Corona Virus alerts begun to be lifted in many countries in recent months as media reports.

The current CEO Mr. Reuben Fischer of 123 Finance Corporation said: "We are seeing an upward inflation pressures aggravated by expensive oil that will increase migration workers abroad and reduce local labor force should the trends continue of raising living costs and the increase of poverty among the ordinary household. A short supply of food items like wheat, pork, fish and corn is looming and this could lead to unprecedented upward inflation pressures in the Philippines which will lead to an increase in OFWs in search of a better live"

"The rising cost of basic commodities is a further incentive for Filipinos to seek higher wages abroad with remittances helping to bridge the financial gap for their families in the Philippines." CEO Reuben Fischer of 123 Finance Corporation stressed.

123 Finance Corporation reported that the Philippines is among emerging markets likely to suffer the most from expensive oil after the beginning of the recent Ukrainian war that will spark many more migration workers from Philippines in the month to come. High costs of living and low income drives the demand for working abroad and more likely will expand the growing number of OFWs from Philippines abroad.

The Philippine Labor Diaspora is one of the largest around the world with around 9 million people or an estimated 10 percent of the Philippine population is currently working abroad and sending roughly $33.5 billion (USD) a year back home, a massive remittance that contributes to the national economy annually.

The official website of the Manila-based 123 Finance Corporation, securities approved Financing firm's website can be found on is on www.123finance.ph

About 123 Finance Corporation:

Manila-based 123 Finance Corporation, a securities approved financing firm listed among the official Philippines financing companies, with a Certificate of Authority (CA) is currently facilitating more than 51% of the Overseas Filipino Workers (OFWs) in foreign countries such as Hong Kong and Saudi Arabia. 123 Finance Corporation Certificate of Authority (CA) can be found on the government website in the list of financing companies as of November 30, 2021 this list of Financing Companies, with Certificate of Authority (CA), subject to amendment/updates.

https://www.sec.gov.ph/lending-companies-and-financing-companies-2/list-of-financing-companies/ 

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SOURCE 123 Finance Corporation