SLOWER transport and fuel cost increases helped bring inflation down to 6.2 percent in July, the Philippine Statistics Authority reported on Wednesday.
The result fell within the Bangko Sentral ng Pilipinas’ (BSP) 5.6- to 6.0-percent estimate for the month and was slightly lower than the 6.3-percent median in a Manila Times poll of economists.Inflation has now gone down for three straight months after hitting a three-year high of 7.2 percent in April, but it remains well above the BSP’s 2.0- to 4.0-percent target.Core inflation, which excludes select food and energy items, eased to 4.2 percent from 4.4 percent in June. It was, however, higher than the 2.3 percent seen a year earlier.Year to date, headline inflation remained at an above-target 5.0 percent while core inflation averaged 3.6 percent.National Statistician Claire Dennis Mapa said the slowdown was primarily driven by easing transport inflation, which moderated to 11.9 percent from 12.8 percent in June as fuel prices declined and supply conditions improved.Food inflation, meanwhile, was steady at 5.3 percent with food and nonalcoholic beverages, in particular, staying at 5.2 percent.Rice inflation, however, rose to 17.1 percent, the highest since July 2024 and adding 1.2 percentage points to overall inflation.Socioeconomic Planning Secretary Arsenio Balisacan said that while “challenges remain, particularly in managing food price pressures, these results show that our interventions are making a difference in easing the impact on Filipino households.”He added that government assistance programs for the transport sector were helping support price stability.The government was said to have released P2.09 billion of the P2.5-billion Fuel Subsidy Program as of July 24, covering 498,570 public utility vehicles (PUVs).Another P356.1 million in assistance was given to 89,551 PUV drivers under a separate P10-per-liter fuel subsidy program.To boost food security and strengthen local food supply, meanwhile, the Department of Agriculture is expected to complete 380 mechanical dryers by 2027.Balisacan said the equipment would help reduce grain losses, improve rice quality, increase farmers’ incomes and strengthen the country’s rice supply.“While inflation is moving in the right direction, our work is far from over,” he said.“We will continue advancing measures to keep essential goods affordable while creating more opportunities for a better quality of life,” he added.Malacañang, meanwhile, welcomed the inflation slowdown and said the government would continue with programs aimed at keeping prices in check.“We welcome this positive news, but the administration remains vigilant as political tensions in the Middle East persist, and the impact of El Niño continues to threaten food and energy prices,” Palace Communications Undersecretary Claire Castro said.She added that lower global crude oil prices had helped cool diesel and gasoline inflation, making transportation expenses more manageable for consumers.Essential food items were also said to have seen price relief due to ample market supply, with pork and chicken prices dropping, and vegetable inflation slowing following steady price declines for eggplant, garlic and onions.Actual month-on-month retail prices for rice continued to decrease, the Palace said, although annual rice inflation remained elevated due to statistical base effects.Castro said the government was carrying out targeted interventions to safeguard Filipino families and keep commodities affordable.
