Inflation Rate of the Philippines Down

The Philippines inflation rate fell to 2.8 percent in June from 2.9 percent in May, the National Statistics Office (NSO) reported on Thursday.

“The downtrend was brought about by the slower annual increments posted in the indices of alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; transport; and recreation and culture,” the NSO said.

Inflation a year ago was 5.2 percent.

The NSO said tuition fee hikes in all the regions including the National Capital Region (NRC) primarily pushed up the country’s month-on-month inflation to 0.5 percent in June from 0.1 percent in May.

“Price increments in the heavily-weighted food items such as chicken, pork, fruits, vegetables, eggs, milk, cheese and sugar were also noted. In addition, higher prices of selected school supplies, clothing, footwear and household items and increased salary of household helper contributed to the uptrend,” NSO said.

The annual inflation in alcoholic beverages and tobacco index improved to 4.8 percent in June from 5.2 percent in May; housing, water, electricity, gas, and other fuels index, 4.2 percent from 4.5 percent; transport index, 1.3 percent from 2.2 percent; and recreation and culture index, 2.4 percent from 2.8 percent.

Prices for food index alone picked up to 2.0 percent in June from 1.7 percent in May.

The corn index recorded a higher annual growth of 5.5 percent in June from 4.5 percent in May; milk, cheese and egg index, 3.3 percent from 3.1 percent; fruits index, 7.2 percent from 7.0 percent; and vegetables index, 1.2 percent from -0.6 percent.

However, the annual adjustments in all the other food groups were either slower or negative during the month.

The annual inflation in the NCR was at 2.2 percent in June, the same rate recorded in May. This was due to the offsetting annual movements among the commodity groups.

Following the same trend at the national level, the annual inflation in areas outside NCR decelerated to 3.0 percent in June from 3.1 percent in May.

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