WORST IS OVER': MEDALLA SAYS INFLATION LIKELY TO REVERT WITHIN TARGET BY Q3

MANILA — Bangko Sentral ng Pilipinas Governor Felipe Medalla on Thursday said the worst could be over for inflation as signs of depreciation are observed despite the consumer price index remaining high in December.

Inflation in December reached 8.1 percent due to higher prices for vegetables such as onions. But other price pressures earlier in 2022 have started to fade including supply shocks and the high prices of sugar and oil, Medalla told ANC.

"I think the worst is over... We thought that the last bad month would be October or November but that didn’t happen. We had another shock. But finally the December print, although the year-on-year is quite high, the month-on-month is back to the normal 0.3 percent," he said.

In a span of 6 months, the BSP raised the key interest rate to 5.5 percent from 2.25 percent to tame inflation and to help stabilize the peso against the US dollar.

The dollar is now "not as strong as it used to" and US inflation, which is pushing the Federal Reserve to raise the interest rate, is "more under control," Medalla said.

It is hard not to respond when the US raises its interest rate, Medalla said. The interest rate differential between the US and the Philippines must be kept at the current level or else investors would prefer US bond instead of peso-denominated bonds, he added.

"All of these together, we are hoping that by the third quarter of this year, inflation will be below 4 percent," Medalla said.

The government inflation target is between 2 and 4 percent.

In terms of the economy, Medalla said the base line forecast is a growth of over 6 percent still buoyed by the pent-up demand.

"Major expenditures that were postponed for more than 2 and a half years that’s still not back yet, this year, we still have some of that," he said.

US HALTS LOCAL FLIGHTS DUE TO SYSTEM OUTAGE

The US Federal Aviation Authority ordered a temporary halt to all domestic flight departures Wednesday, after a major system outage that disrupted air traffic across the country.

Airlines and airports were left scrambling with news of the nationwide pause, as the White House said there was no immediate evidence of a cyberattack.

The FAA, which paused flights until 9:00 am (1400 GMT), said a key process had been “impaired” after a problem with its Notice to Air Missions system (NOTAM), which provides information to flight crews about hazards, changes to airport facilities and other essential information.

The pause, it said, would allow “the agency to validate the integrity of flight and safety information.”

Speaking to reporters, President Joe Biden said that he had been briefed by the transportation secretary and that “aircraft can still land safely, just not take off right now.”

“They don’t know what the cause of it is, they expect in a couple of hours they’ll have a good sense of what caused it and will respond at that time,” Biden said.

“The FAA is still working to fully restore the Notice to Air Missions system following an outage,” the agency said in a statement, adding that while “some functions are beginning to come back on line, National Airspace System operations remain limited.”

White House Press Secretary Karine Jean-Pierre tweeted that “there is no evidence of a cyberattack at this point.”

“The President directed DOT to conduct a full investigation into the causes. The FAA will provide regular updates,” she said, referring to the Department of Transportation.

There were at least 3,500 flights delayed in the United States by 8:00 am US Eastern time (1300 GMT), flight tracking website Flight Aware data showed.

Transportation Secretary Pete Buttigieg said he was in contact with the FAA.

'WORLD'S MOST EXPENSIVE': CARTEL BEHIND ONION PRICE SPIKE - SALCEDA

Albay 1st District Representative Joey Salceda on Thursday blamed a cartel for the escalating prices of onions and other goods, saying onion prices in the Philippines are the highest in the whole world.

Salceda said that aside from supply issues, smuggling could be behind the price spikes.

"Obvious po yan kasi ang smuggling kung susundan mo talaga ang economics, pag dumami supply dapat bagsak presyo. So bakit umaakyat imbes na bumagsak?" he said in a TeleRadyo interview.

The congressman said a cartel intent on controlling onion prices first flooded the Philippine market with cheap onions, thereby discouraging local farmers from planting the product.

The cartel then raised the prices after local supply of onions dwindled.

Salceda said he has the names of several people allegedly running the smuggling ring of vegetables as well as meat. He did not reveal their identities but said they are mainly Chinese nationals.

The House of Representatives is set to conduct a series of hearings on the issue starting Jan. 23.

MARCOS JR. VISITS FLOOD-HIT AREA, VOWS AID, HOUSING TO VICTIMS

President Ferdinand Marcos Jr. has directed the National Housing Authority (NHA) to find a resettlement area for Misamis Occidental residents whose houses were destroyed by the recent flooding.

“We are coordinating with the National Housing Authority. The houses that were totally destroyed, we will look for their resettlement area so they could have a place to live,” President Marcos said during the distribution of government assistance at The Working Congressman Sports Complex in the Municipality of Tudela.

“So, that will be our task,” Mr. Marcos said.

Once a relocation area is identified, the government will send rebuilding materials so people can start constructing new homes, he said.

The President also sought to improve flood-control structures, which serve as the first line of defense against floods and overflowing rivers.

The President assured the residents of Misamis Occidental that the government would continue providing assistance such as relief, potable water, clothing, and temporary shelter for the evacuees.

Local officials said more than 16,000 families were affected by the flooding.

In some areas in Eastern Visayas, roof-level floods prompted authorities in Tacloban City to evacuate residents on Wednesday.

The Police Regional Office-Eastern Visayas (PRO 8) said a total of 357 centers were already established across the region, taking care of 2,767 families or 11,158 individuals, as of noon Wednesday.

HEAVY RAINS, FLOODS LEAVE 2 DEAD IN NORTHERN SAMAR

MANILA — Two people were killed in Northern Samar due to floods and torrential rains, a disaster management official said Thursday.

According to Josh Echano, head of Northern Samar Provincial Disaster Risk Reduction and Management Office, a resident died in Laoang while a soldier was swept away by floodwaters in San Isidro.

The military personnel was identified as Corporal Jerry Palacio of the 43rd Infantry Battalion.

Four towns in the province were also severely affected by flooding, he added. These are Catarman, Catubig, Las Navas and Lope de Vega.

Meanwhile, some 18,239 individuals or 4,561 families are staying in evacuation centers.

The provincial government is still conducting a rapid assessment to determine the number of damaged houses and losses to agriculture.

According to state weather bureau PAGASA, a low-pressure area and shear line are affecting parts of the Visayas and Mindanao.

The brewing storm was spotted 380 kilometers east of Surigao City, Surigao del Norte as of 3 a.m. Thursday.

At least 11 people have died in storms across the Philippines in the past week, with more heavy rain expected in already sodden regions of the disaster-prone country, authorities said Tuesday.

Bad weather has plagued the country's southern and central islands since the Christmas weekend when downpours triggered flooding and landslides that left 52 people dead and forced hundreds of thousands to flee their homes.

Since January 3, back-to-back storms have killed 11 people as floodwaters swept through houses, cut roads and swamped crops, the civil defense office said.

Heavy rain has already inundated villages, with water levels reaching 3 meters or 10 feet in some places.

SENATE TO LIMIT FIXED TERMS TO 4 MILITARY OFFICERS

The Senate aims to pass a bill limiting the coverage of the three-year fixed terms in the Armed Forces of the Philippines (AFP) to only four key officials within the first quarter of this year, Senate President Juan Miguel Zubiri said Wednesday.

Under the proposed measure, only the AFP chief of staff, the commanding generals of the Philippine Army and Philippine Air Force, and the Flag-officer-in-command of the Philippine Navy will be given fixed terms, unless sooner terminated by the President.

The bill would exclude from the coverage of the three-year tenure the vice chief of staff, deputy chief of staff, unified command commanders, and inspector general.

“We are now hell-bent on amending the law,” Zubiri said of Republic Act (RA) 11709 during a media forum. “We are looking at passing it this first quarter of this year.”

“I think the amendment will help with the stability in the military establishment and will remove the sulking of the junior officers,” Zubiri said, amid rumors of unrest among AFP personnel.

Zubiri said he already discussed this with Senator Jinggoy Estrada, who chairs the Senate Committee on National Defense and Security, Peace, Unification, and Reconciliation, and already set up a technical working group to study measures amending RA 11709.

Meanwhile, former Senator Panfilo Lacson yesterday said he doesn’t see the wisdom or logic to amend the new law, RA 11709, “which has not been tested yet.”

ZUBIRI DEMANDS HEADS ROLL OVER AIRPORT FIASCO AS SENATE PROBE STARTS

Senate President Juan Miguel Zubiri on Wednesday said officials responsible for the New Year’s Day air traffic fiasco that caused more than 360 flights in and out of Manila to be canceled, diverted, or delayed, should be fired for embarrassing the entire country.

“It is unforgivable, what happened to us. Why? First, it was embarrassing. The whole world got the news that no planes could enter Philippine airspace… If it was incompetence, then people should be fired,” Zubiri said at a media forum.

Zubiri said he was vacationing in Japan when he heard the news of the incident, which affected about 65,000 passengers.

The Senate committee on public services is set to investigate the incident today, Thursday.

Zubiri said he wants to find out if the fiasco was caused by mere incompetence or sabotage, given that similar incidents “only happened three times in the world.”

“If there was sabotage, hacking, they should disclose that. If it was their fault, they should admit it,” he said.

The Civil Aviation Authority of the Philippines (CAAP) said the problem started when the air traffic management center, which controls inbound and outbound flights, suffered a power outage that led to the loss of communication, radio, radar and internet. A backup power system failed to kick in.

Transportation Secretary Jaime Bautista said a secondary problem was the power surge due to the power outage that affected the equipment.

PALACE BARES MORE APPOINTMENTS

President Ferdinand Marcos Jr. has appointed former Commission on Audit chairman Michael Aguinaldo as chairman of the Philippine Competition.

Aguinaldo, a lawyer by profession, will serve for a term expiring on Jan. 7, 2030

The President also reappointed former Angeles City Mayor Edgardo Pamintuan as acting chairman of the Clark Development Corporation.

Pamintuan was first appointed as CDC chairman by then President Rodrigo Duterte in February 2021.

Mr. Marcos also appointed Robert Rayo Bioco as acting Administrator and member of the National Food Authority.

Other appointees are as follows:

– Gloria Jacinto Balboa as Assistant Secretary of the Department of Health, Johanna Solon Banzon as Director IV, and Rodley Desmond Daniel Muñoz Carza as Director III;

– Jocelyn De Guzman Cabreza and Alan Rio Luga as acting members of the GSIS, representing the Banking, Finance, Investment and Insurance sectors, and as Board of Trustees of the GSIS;

– Faith Baranda De Guia as Director III of the Presidential Communications Office;

– Genesis Rivero Abot as Deputy Director General of ARTA; and

– Robert Joseph Montes de Claro as acting member, representing the Employer’s Group of the Social Security Commission.

THE REST

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SOME NAIA PASSENGERS MISS FLIGHT DUE TO IMMIGRATION QUEUES

MANILA — Some departing passengers at the Ninoy Aquino International Airport (NAIA) Terminal 3 were not able to board their flights due to long queues at the immigration area Wednesday afternoon.

Elsa Aquino, one of the passengers who did not make it to her scheduled flight at 3:55 p.m., complained about waiting for two hours in line.

Aquino, together with her two children, were set to fly to Dubai to celebrate her 60th birthday next week.

"Parang nagsisi ako. Meron pa ngang nahilo. Ako nga, may fracture kaya ngawit na ngawit ako. Dapat mayroon silang priority lane sa mga seniors at may mga iniinda," she said.

The Aquino family had to re-book their tickets to a Thursday morning flight and opted to stay overnight at the airport's lobby.

"Diyos ko, naka-rebook na kami, kaya lang wala na sanang delay sa immigration," she said.

Bureau of Immigration (BI) Commissioner Norman Tansingco said that "all agencies involved in airport operations must work together to resolve airport lines."

Tansingco explained that immigration counters at the airport have reached the maximum capacity, even after assigning two to four immigration officers to counters in certain terminals.

Tansingco called for the cooperation of airline companies by regulating the influx of travelers through proper scheduling.

BAYAN QUESTIONS POSSIBLE LRT FARE HIKE

MANILA — Two out of 8 Light Rail Transit Authority (LRTA) board members approved a petition to increase the fare of LRT-1 and LRT-2.

Based on the document sent to ABS-CBN News, the Land Transportation Franchising and Regulatory Board (LTFRB) and a private representative sector signed the proposal to increase the fare.

The resolution is yet to be approved by secretaries of the Department of Finance, National Economic Development Authority, Department of Public Works and Highways, Metropolitan Manila Development Authority, LRTA admin, and, finally, Department of Transportation.

The hike would mean an additional boarding fee of P2.29 and a distance fare of 21 centavos. The new boarding fare will become P13.29, while the distance fare will increase to P1.21 per kilometer — both in LRT-1 and LRT-2.

Bayan questioned the timing and process of the looming fare hike.

“The DoTr said in May 26, 2022 that there would be no fare hike amid rising inflation, which at that time was at 4.9%. Inflation at end of December 2022 already reached 8.1%. So why will a fare hike be granted now?” Bayan Secretary General Renato Reyes Jr. said.

Reyes also said that the fare hike approval should not push through in the absence of “real” public hearings.

BIR: SEIZURE OF VAPE PRODUCTS CONTINUES

MANILA — The Bureau of Internal Revenue (BIR) yesterday called on vape traders to comply with the business registration requirement and tax obligations amid the continued smuggling of vaporized cigarettes despite the enactment of the Vape Law.

BIR Commissioner Romeo Lumagui issued the statement as tons of smuggled and untaxed vape products continue to be seized from traders.

The business registration requirements and tax obligations are part of the implementation of the Vape Law that covers the importation, manufacture, sale, packaging, distribution and use of vape products.

Vape products being sold should only be made by online sellers or distributors registered with the BIR, Department of Trade and Industry (DTI), Securities and Exchange Commission or the Cooperative Development Authority.

Lumagui said duly registered distributors, merchants and retailers must post the required government certificates and approvals of the products at the landing page of their website or selling platforms.

Violators face up to six years in prison and fines ranging from P2 million to P5 million.

ENTERTAINMENT & LIFESTYLE

CELESTE CORTESI SLAYS IN SWIMSUIT ROUND OF MISS UNIVERSE PRELIMS

Philippine bet Celeste Cortesi stunned the crowd during the Miss Universe 2022 swimsuit preliminary competition earlier today in New Orleans.

Hosted by news anchor Randi Rousseau and Miss Universe 2021 Harnaaz Sandhu, the 88 contestants walked the runway in a pink two-piece swimsuit with a cape.

The candidates wore the shoes designed by Jojo Bragais, who has been chosen as the official footwear for the competition.

Celeste Cortesi is a Filipino-Italian model and beauty pageant titleholder who was crowned Miss Universe Philippines 2022. She will represent the Philippines at the Miss Universe 2022 competition.

Cortesi was previously crowned Miss Earth Philippines 2018 and represented the Philippines at the Miss Earth 2018 pageant, where she finished in the Top 8.

Yesterday, Celeste vowed to be authentic in the Miss Universe 2022 competition.

In a video posted on her Instagram story, Celeste said she wanted to be herself and share her story to the universe.

"So this journey in Miss Universe is so amazing, so much fun. I've been preparing a lot for this," she said.

"It's my honor to represent the Philippines and I really wanted to step in this competition wanting to be authentic, wanting to be myself, share my story to others," she added.

SPORTS

PBA FINALS GAME 6

Bay Area Dragons def. Ginebra, 87-84

PBA guest team Bay Area Dragons defeated the crowd favorite Barangay Ginebra, 87-84 in Game 6 to force a do-or-die Game 7 in the 2022-23 PBA Commissioner's Cup Finals on Wednesday, January 11 in front of 22,361 fans at the SMART Araneta Coliseum. The Big Dome witnessed its largest PBA Finals crowd since Game 6 of the 2016 Governors' Cup Finals.

Myles Powell returned in a big way with 29 points (11/20fg, 5/11 3pts, 2/4ft) along with 7 rebounds and 3 assists in 35 minutes of play. Hayden Blankley with another solid game of 23 points (8/13fg, 6/10 3pts, 1/2ft) to go with 7 rebounds, 1 assist and 3 steals while Zhu Songwei finished with a double-double of 10 points, 7 rebounds, 10 assists and 2 blocks. Glen Yang, who did not play in Game 5, scored 10 points (4/8fg, 2/5 3pts), 3 rebounds, 2 assists and 2 steals in 43 minutes of play.

Justin Brownlee paced the Gin Kings with a triple-double of 37 points (15/30fg, 4/10 3pts, 3/4ft), along with 10 rebounds, 11 assists, 4 steals and 4 blocks in 47 minutes & 22 seconds while Christian Standhardinger and Japeth Aguilar added 12 points each.

As announced by PBA commissioner Willie Marcial as per clamor from fans the Finals Game 7 has been moved to Sunday, January 15, 2023 (instead of January 13) at the 55,000-seater Philippine Arena in Bocaue, Bulacan at 5:45pm. Buy PBA Game Tickets

The Scores:

BAY AREA 87 - Powell 29, Blankley 23, Yang 10, Zhu 10, Lam 9, Liu 4, Reid 2, Zheng 0, Ju 0.

GINEBRA 84 – Brownlee 37, Standhardinger 12, J Aguilar 12, Thompson 8, Pringle 8, Malonzo 4, Pinto 3, Tenorio 0, Gray 0.

Quarters: 25-20, 50-42, 66-64, 87-84.

INDICATORS

FOREX $1 = P 54.80

THOUGHT FOR THE DAY

We live but a fraction of our lives. - Henry David Thoreau