Inflation rate in the Philippines eased to 3.7 percent in June 2024 from 3.9 percent in May, the Philippine Statistics Authority said Friday.
The National Economic and Development Authority (NEDA) said the inflation slowdown was due to the easing of energy and transport costs. It said government remains committed to addressing the issue of rising food prices and ensuring food security for all.
A significant factor contributing to this slowdown is the sharper deflation in electricity, which was recorded at -13.7 percent from -8.5 percent. This led to a reduction in the inflation rate of housing and utilities to 0.1 percent in June, down from 0.9 percent in May.
Transport inflation decelerated to 3.1 percent from 3.5 percent primarily due to lower inflation rates in personal transport (to 3.5 percent from 5.3 percent) and gasoline (2.3 percent from 5.2 percent). The decrease followed the additional rollback in gasoline prices in early June 2024.
“We are committed to maintaining the country’s inflation rate within our target range of 3 to 4 percent. The easing in our inflation rate in June, mainly due to lower electricity rates, highlights the importance of strengthening our energy sector to sustain our gains,” NEDA Secretary Arsenio Balisacan said.
Food inflation increased to 6.5 percent in June from 6.1 percent in the previous month. This was mainly driven by higher prices of vegetables and meat. Vegetables recorded an inflation rate of 7.2 percent in June, up from 2.7 percent in May, as the onset of the rainy season affected supply.
The uptick in meat prices, with an inflation rate of 3.1 percent for the month compared to 1.6 percent the previous month, was due to higher pork (3.9 percent from 2.4 percent), chicken (2.4 percent from -0.3 percent) and beef (2.8 percent from 2.6 percent).
Pork inflation rose amid the rise in active African swine fever cases. Chicken inflation increased as the temporary import ban on poultry products from the United States and Australia affected supply.
Rice inflation slightly declined to 22.5 percent in June from 23.0 percent in May.
“We will continue to work closely with the government, stakeholders, and other priority sectors to implement necessary measures to ensure that the country will have a sufficient and affordable food supply—including rice—for every Filipino,” Balisacan said.
The Development Budget Coordination Committee (DBCC) earlier expressed its determination to achieve price stability and return to the country’s average inflation rate target range of 2 percent to 4 percent between 2025 and 2028.
The DBCC aims to reach this target by proactively implementing monetary policy measures and well-targeted government interventions that address the primary drivers of inflation.
“This includes implementing the new Comprehensive Tariff Program for 2024-2028 to improve the affordability of essential commodities amid the rising global prices, and the Food Stamp Program to mitigate the impact of elevated food prices on the poor and vulnerable sector,” the DBCC said in a statement.