INFLATION in the Philippines decreased for the sixth consecutive month, reaching 4.7 percent in July, the lowest since March 2022.
The National Economic and Development Authority (Neda) reported on Friday, Aug. 4, 2023, that the slowdown of the country's inflation was primarily due to slower increases in both food and non-food prices.
"While we continue to experience a downtrend in inflation, we need to be vigilant, especially as we face increasingly volatile weather disturbances as well as external headwinds such as oil price increases and trade restrictions on food," Neda Secretary Arsenio Balisacan said in a press statement.
Inflation eased further in July, dropping from 5.4 percent in June, according to the Philippine Statistics Authority.
Monitoring
Balisacan assured the public that the National Government, led by Neda, is closely monitoring the supply and demand of key commodities to achieve its inflation target of two to four percent by the year's end. Inflation is a general increase in prices and a decrease in the purchasing power of money.
Neda said food inflation decelerated to 6.3 percent in July from 6.7 percent in June, as inflation rates of the following food items slowed: fish and other seafood (4.5 percent from 6.2 percent), eggs and dairy products (9.7 percent from 11.2 percent), bread and other cereals (10.1 percent from 11.0 percent), and sugar (21.4 percent from 28.9 percent).
As for non-food inflation, Neda said it further eased to 3.3 percent in July from 4.1 percent in June. Inflation of electricity, gas, and other fuels slowed from 5.2 percent to 2.5 percent, while inflation for passenger transport services declined from 11.2 percent to 7.2 percent.
Top contributors
Non-food items, including food services, housing rentals, and passenger transport, remain the top contributors to inflation, contributing a total of 1.8 percentage points.
Agricultural commodities such as vegetables, rice, fish, and dairy products contributed a total of 1.5 percentage points, according to Neda.
Weather disturbances
To ensure that the current weather disturbances will not have a lingering impact on inflation and the economy for the rest of the year, Balisacan said the government has proactively taken steps to deploy its resources to affected areas, as well as prepare its policy and on-the-ground response, given the expectation of more typhoons and weather disturbances that the state weather bureau said will be aggravated by El Niño phenomenon.
Two typhoons recently affected the country, mostly in its northern provinces -- super typhoon Egay (Doksuri) and typhoon Falcon (Khanun).
"The government will implement necessary measures to prevent price spikes, protect the purchasing power of Filipino families, and sustain our economic recovery and momentum," Balisacan said. (KAL)
