The Philippines’ headline inflation moderated to 3.7 percent in June 2024 from 3.9 percent in May, signaling a slight deceleration in overall price levels.
The June inflation print was at the lower end of the central bank’s forecast range of 3.2 percent and 4.2 percent, raising hopes the Bangko Sentral ng Pilipinas could trim interest rates later this year if inflation stays within the 2 percent to 4 percent target range.
The dip in the consumer producer index was primarily influenced by slower increases in housing, water, electricity, gas, and transport costs, the Philippines Statistics Authority said Thursday.
Specifically, the annual increment in housing-related expenses slowed from 0.9 percent in May to just 0.1 percent in June, contributing significantly to the easing inflationary pressure.
However, food inflation saw a modest uptick, rising to 6.5 percent from 6.1 percent the previous month. This increase was driven by notable price hikes in vegetables, tubers, plantains, cooking bananas, pulses, and meats. Corn, fruits, and ready-made food products also experienced accelerated inflation rates during the period.
On the contrary, some food categories like rice, bakery products, and dairy showed slower annual growth rates, while fish and seafood even experienced a decline in prices.
Core inflation, which excludes volatile food and energy items, remained stable at 3.1 percent in June 2024. This suggests that underlying inflationary pressures, excluding the volatile sectors, were contained and did not contribute significantly to the overall headline inflation.
The inflation rate for the bottom 30 percent income households increased to 5.5 percent in June from 5.3 percent in May. This brings the average inflation for this income group from January to June 2024 to 4.8 percent. In June 2023, inflation rate was posted at 6.1 percent
These figures illustrate a nuanced inflationary landscape in the Philippines, with moderating overall inflation but with some sectors, particularly food, experiencing upward price pressures.
