JULY INFLATION ROSE TO 4.4%, EXCEEDS TARGET RANGE – PSA

Inflation rate in the Philippines quickly increased to 4.4% in July after it lowered in June 2024 recording 3.7%. The latest figure has breached the government’s target range of 2% to 4%, the Philippine Statistics Authority (PSA) said on Tuesday.

According to National Statistician and PSA chief Claire Dennis Mapa, measurinng the rate of increase in the prices of goods and services, the major contributors for July’s inflation are the increase in prices of food and non-alcoholic beverages, which had an inflation of 6.4%. This contributed a total of 55.5% to the overall inflation.

From 3.7% in June, July’s inflation rate jumped to 4.4% as food and non-alcoholic beverages is the main source contributing 55.5% (Photo courtesy of Philippine Star)

"Food inflation (Cereals, meats, as well vegetables and tubers) at the national level rose to 6.5 percent in June 2024 from 6.1 percent in May 2024. In June 2023, food inflation was higher at 6.7 percent," the PSA said.

Power rate hikes was one of the biggest impacts on the inflation rate. “We expected that because Meralco adjusted rates in July. So that really had a big contribution to inflation,” Mapa said.

Other factors were the fuel price hikes last month including the diesel, gasoline, and LPG. And housing, water, and electricity price inflation was at 2.3%, contributing 11.3% to the uptick in overall inflation. Rentals, LPG and water supplies were the main contributors in this category.   

The restaurants and accommodation services was the third highest contributors which had an inflation of 4.9% and had a share of 10.8% for overall national inflation. Also transport (3.6%), and education services (5.8%).   

In the commodities, the top five contributors to inflation according to the PSA were: Rice, Restaurants, Rentals, LPG, and Tomatoes, fresh or chilled. 

Meanwhile, lower inflation was recorded for the following commodity groups: alcoholic beverages and tobacco (3.4%), clothing and footwear (3.1%), health (2.8%), recreation, sports and culture (3.4%), and restaurants and accommodation services (4.9%).

Source: GMA Integrated News 

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