The Department of Finance expects food inflation to peak this month before easing in the coming months.
It said in an economic bulletin “bolstering food productivity is necessary for long-term food price stability.”
“Meanwhile, crude oil prices trend up as global recovery boosts oil demand. A quick pass-through of international crude oil prices on domestic prices is desirable since the country is an oil importer. The use of more energy-efficient technologies has allowed the country to trim down the impact of oil price adjustments on domestic inflation,” the agency said.
Inflation slowed down to 4.1 percent in June, after recording an inflation of 4.5 percent for three consecutive months. The figure brought the average inflation in the first semester to 4.4 percent, over the target range of 2 percent to 4 percent for the year.
Food price inflation maintained its pace in June at 4.88 percent, unchanged from May’s 4.87 percent.