Philippines inflation drops to 3.7% in June

The Philippines' annual inflation rate decelerated to 3.7% in June from 3.9% in May due to the easing of energy and transport costs, the country’s Statistics Authority (PSA) said on Thursday.

At a press conference, PSA chief Dennis Mapa explained that the downtrend in the overall inflation last month was primarily influenced by the slower annual increment of housing, water, electricity, gas, and other fuels at 0.1% in June from 0.9% in May.

Mapa added that the slower annual increases in transport costs, restaurants and accommodation services, also contributed to the downtrend.

The June inflation rate brought the national average inflation from January to June to 3.5%. In June 2023, the inflation rate was higher at 5.4%.

Mapa said the core inflation, which excludes selected food and energy items, steadied at 3.1% in June. In June 2023, core inflation was much higher, at 7.4%.

National Economic and Development Authority Secretary Arsenio Balisacan said food inflation increased to 6.5% in June from 6.1% in May.

According to him, higher prices of vegetables and meat mainly drove the elevated food inflation.

He stressed that the department will continue to work closely with the government, stakeholders, and other priority sectors to implement necessary measures to ensure that the country will have sufficient and affordable food supply.

In a press conference on June 27, the Development Budget Coordination Committee expressed its determination to achieve price stability and return to the country's average inflation rate target range of 2-4% between 2025 and 2028.