MANILA - The water shortage in Metro Manila will not have a direct inflationary and economic effect, the spokesperson of the Department of Finance (DOF) said Friday.
"We do not expect a direct impact on inflation as water rates are regulated," Finance Assistant Secretary Antonio Lambino said, responding to query of reporters.
Lambino said the economic team will be monitoring the indirect impacts very closely and will recommend urgent action, if needed.
"Recommendations that President Rodrigo Duterte approved last year tamed inflation in the shortest amount of time in 20 years," he said.
Lambino said the National Water Resources Board, given the critical water level of Angat Dam, will be prioritizing Metro Manila's water supply over irrigation.
"Most farmers are already in the middle of the planting season and, therefore, have less need for water," he said.
"We need to continue to do all we can to ensure that the domestic food supply is protected, as lack of agricultural productivity was one of the largest contributors to elevated inflation last year," he added.
Both Manila Water and Maynilad get their water supply from Angat Dam. (PNA)