Inflation rate in the Philippines climbed to 4.4 percent in July 2024 from 3.7 percent in June, the Philippine Statistics Authority said Tuesday.
The increase was primarily driven by higher inflation in both food and non-food items, with notable upticks in housing prices, utilities, fuel, meat, corn and fruits.
This brought the average inflation in the first seven months of 2024 to 3.7 percent, which remained within the government’s target range of 2 percent to 4 percent.
The National Economic and Development Authority (NEDA) assured the public that the government is implementing crucial interventions to support the most vulnerable sectors and ensure food security amid the La Niña phenomenon and the higher inflation recorded in July.
“The government is relentlessly working to address our nation’s most pressing concern of ensuring food security for every Filipino amid the faster rise in prices in July and the expected typhoons and rains due to the onset of La Niña this August,” NEDA Secretary Arsenio Balisacan said.
Balisacan said the weather phenomenon was expected to persist until the first quarter of 2025.
Data from the PSA show that food inflation rose to 6.7 percent in July from 6.5 percent in June 2024. This was attributed to higher inflation rates for meat (4.8 percent from 3.1 percent), corn (17.5 percent from 13.1 percent), fruits (8.4 percent from 5.6 percent), eggs and other dairy products (1.8 percent from 1.3 percent), and ready-made food products (6.0 percent from 5.9 percent). On the other hand, fish (-0.8 percent from -1.4 percent) and sugar (-3.4 percent from -3.0 percent) recorded softer deflation.
Under non-food items, transportation inflation registered 3.6 percent in July 2024, up from 3.1 percent in June. The increase was driven by increasing global petroleum prices due to the unexpected large withdrawals of United States gasoline stocks, optimistic fuel demand forecasts, and the ongoing geopolitical tension in the Middle East.
Housing and utilities inflation (2.3 percent from 0.1 percent) also climbed, while electricity (-5.4 percent from -13.7 percent) recorded a slower deflation.
The change was linked to the rise in international contract prices of liquefied petroleum gas (LPG) and the increase of Meralco rates in July. The Wholesale Electricity Spot Market charges normalized after the Energy Regulatory Commission ordered a staggered collection of May generation costs.
While rice inflation slowed to 20.9 percent from 22.5 percent, it remained the top contributor to the July inflation with 1.9 percentage points (ppt), followed by food and beverages services (0.5 ppt), housing rental (0.3 ppt), and meat (0.3 ppt).
The Department of Agriculture (DA) launched the Rice-for-All Program on Aug. 1, 2024 to ease the burden of high rice prices. Under the program, rice will be sold at P45 per kilo at selected KADIWA centers, with prices adjusted according to the fluctuations in rice prices.
In preparation for La Niña, DA assured the availability of the quick response fund, assistance, credit, and seed buffer stock. The agency also expedited the declogging of farm drainage systems and constructing water-impounding projects and post-harvest facilities.
To assist farmers in dealing with higher fuel prices, the DA will provide around P510 million in fuel subsidies to crop, livestock, and poultry farmers. It is anticipated that around 160,000 farmers will benefit from over PHP3,000 in fuel assistance between August and September 2024.
“Between 2023 and 2021, about 2.5 million Filipinos were lifted out of poverty, bringing our country’s poverty incidence down to 15.5 percent from 18.1 percent. Our goal now is to sustain this momentum by addressing the constraints to food security and economic development more broadly,” the NEDA chief said.
“We emphasize that the country’s economic gains are intended to benefit all Filipinos. The government’s economic policies aim to alleviate poverty by ensuring that all Filipinos can afford their basic needs and achieve a decent standard of living toward a matatag, maginhawa, at panatag na buhay para sa lahat,” he said.
