Philippine inflation rate eases to 4.7 per cent in July, lowest rate since March 2022

MANILA (Xinhua): Year-on-year inflation in the Philippines slowed for the sixth consecutive month to 4.7 per cent in July, the lowest rate since March 2022, the Philippine Statistics Authority (PSA) has announced.

PSA head Dennis Mapa said the main drivers that pulled down the July inflation were housing, water, electricity, gas, and other fuels at 4.5 per cent from 5.6 per cent in June; the food and non-alcoholic beverages at 6.3 per cent from 6.7 per cent; and transport, which decelerated to -4.7 per cent from -3.1 per cent in the previous month.

The July inflation brings the average inflation rate in the first seven months at 6.8 per cent, higher than the 5 to 6 per cent average inflation targets for 2023.

The core inflation, excluding selected food and energy items in the headline inflation, slowed to 6.7 per cent in July, added Mapa.

"We are seeing a reduction in inflation rate since January, although the prices of some items, such as rice and vegetables, spiked," Mapa told a press conference.

"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 prices and trade restrictions on food," National Economic and Development Authority Secretary Arsenio Balisacan said.

The government has 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 El Nino, said Balisacan.

The Manila-based Asian Development Bank forecasts inflation in the Philippines to average 6.2 percent in 2023 before easing to 4 percent in 2024. - Xinhua