Inflation declines to 3.7% in June from 3.9% in May
The Philippine Statistics Authority (PSA) reported Friday that the inflation rate eased to 3.7 percent in June, down from 3.9 percent the previous month.
This was within the Bangko Sentral ng Pilipinas forecast between 3.4 percent to 4.2 percent.
A significant factor contributing to this slowdown is the sharper deflation in electricity, which was recorded at -13.7 percent from -8.5 percent. This led to a reduction in the inflation rate of housing and utilities to a mere 0.1 percent in June, down from 0.9 percent in May.
“The easing in our inflation rate in June, mainly due to lower electricity rates, highlights the importance of strengthening our energy sector to sustain our gains,” Balisacan said.
Food inflation saw an increase to 6.5 percent in June, up from 6.1 percent in the previous month. This was mainly driven by higher prices of vegetables and meat. Vegetables recorded an inflation rate of 7.2 percent in June, up from 2.7 percent in May, as the onset of the rainy season affected supply.
The uptick in meat prices, with an inflation rate of 3.1 percent for the month compared to 1.6 percent the previous month, was due to higher pork (3.9 percent from 2.4 percent), chicken (2.4 percent from -0.3 percent), and beef (2.8 percent from 2.6 percent) inflation. Pork inflation rose amid the rise in active African swine fever cases.
Chicken inflation increased as the temporary import ban on poultry products from the United States and Australia affected supply.
While rice inflation slightly declined, it remained high at 22.5 percent in June from 23.0 percent in May.
In a press conference on June 27, the Development Budget Coordination Committee (DBCC) expressed its determination to achieve price stability and return to the country’s average inflation rate target range of 2 to 4 percent between 2025 and 2028.
The DBCC aims to reach this target by proactively implementing monetary policy measures and well-targeted government interventions that address the primary drivers of inflation.
“This includes implementing the new Comprehensive Tariff Program for 2024-2028 to improve the affordability of essential commodities amid the rising global prices, and the Food Stamp Program to mitigate the impact of elevated food prices on the poor and vulnerable sector,” the DBCC said in a statement. NEDA Public Affairs
