(PNA file photo)
MANILA – Headline inflation hit a 16-month low in July, settling at 4.7 percent from 5.4 percent in June, the Philippine Statistics Authority (PSA) reported on Friday.
In a briefing, National Statistician Dennis Mapa said last month’s headline inflation was down from 6.8 percent in the same month last year and the lowest recorded since 4 percent in March 2022.
Core inflation, which excludes volatile oil and food items, also went down to 6.7 percent from 7.4 percent in June.
According to Mapa, the continued downtrend of overall inflation during the month was mainly due to the slower year-on-year increase in housing, water, electricity, gas and other fuels at 4.5 percent from 5.6 percent in June due to the slower price increase in electricity, house rentals, and liquefied petroleum gas (LPG).
"The slower annual increment observed in the heavily weighted food and non-alcoholic beverages at 6.3 percent in July 2023 from 6.7 percent in the previous month also contributed to the downward trend of headline inflation," Mapa said.
He said another main source of deceleration was transport, recording a faster annual decrease of -4.7 percent from -3.1 percent in June.
Year to date, headline inflation settled at 6.8 percent while core inflation was at 7.6 percent.
Inflation in the National Capital Region (NCR), meanwhile, remained at 5.6 percent.
In areas outside the NCR, inflation decelerated to 4.4 percent from 5.3 percent in June.
For the bottom 30 percent of households, inflation likewise fell to 5.2 percent from 6.1 percent in the previous month.
In a Viber message to reporters, Department of Finance Secretary Benjamin Diokno said the latest data shows that inflation could settle within the government's target by the end of this year.
"This (is) the sixth consecutive month that inflation has eased, strongly supporting the likelihood that inflation might be within the 2 to 4 percent target range by the fourth quarter of 2023," Diokno said.
National Economic and Development Authority Secretary Arsenio Balisacan, however, said despite the continued downtrend, the government is proactively monitoring the supply and demand situation of key commodities to achieve the 2 percent to 4 percent inflation target by the end of the year.
“While we continue to experience a downtrend in inflation, we need to be vigilant, especially as we face increasingly volatile weather disturbances, as well as external headwinds, such as oil price increases and trade restrictions on food,” Balisacan said in a separate statement.
He noted that to ensure that the current weather disturbances would not have a lingering impact on inflation and the economy for the rest of the year, the government has proactively taken steps to deploy its resources to affected areas, as well as prepare its policy and on-the-ground response as it expects more typhoons and weather disturbances from the El Niño.
“The government will implement necessary measures to prevent price spikes, protect the purchasing power of Filipino families, and sustain our economic recovery and momentum,” he said.
According to Balisacan, the Inter-Agency Committee on Inflation and Market Outlook and the Economic Development Group held a joint meeting on July 20 to discuss proposed policy adjustments that seek to ensure a more stable supply of agricultural products to meet the demand of different users and end-consumers adequately. (PNA)
