El Niño won’t have significant effect on inflation — NEDA

The El Niño phenomenon is not expected to have a significant impact on inflation or the economy, an official of the National Economic and Development Authority (NEDA) said on Saturday.

The state weather bureau PAGASA recently declared the onset of El Niño, a naturally occurring phenomenon associated with less rainfall and drier conditions.

“Hindi kami nakakakita ng malaking negative impact nito sa inflation or sa economy,” NEDA Undersecretary Rosemarie Edillon said on the sidelines of a weekly media forum in Quezon City.

She said the peak of El Niño is expected to occur at the start of 2024.

Edillon cited the reduction of allocation for irrigation water in favor of residential use at Angat Dam, which supplies water to Metro Manila residents, as helping ease the effects of the phenomenon.

She also said that the planting season has already finished, eliminating the need for irrigation water at this point.

The NEDA official also called for the completion of small impounding water projects.

“So, again ngayong taon na ito hindi namin nakikita iyon. Kung impact for next year that really depends on how we’re able to prepare this year,” Edillon said.