Metro Manila, Philippines — The rate of price increases in the Philippines maintained its downtrend for the sixth straight month in July, but a government official said the onslaught of recent typhoons may affect the slowdown.
In a briefing on Friday, the Philippine Statistics Authority (PSA) reported that inflation last month was cooler at 4.7% from the 5.4% recorded in June.
July’s inflation rate is within the 4.1% to 4.9% forecast range of the Bangko Sentral ng Pilipinas for the month.
National Statistician Dennis Mapa said last month’s inflation was the slowest since March 2022’s 4%.
The PSA attributed the deceleration to a slower increase in housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; and transport.
Food inflation likewise showed a drop from 6.7% in June to 6.3% on the decrease in meat and other parts of slaughtered land animals; fish and other seafood; and sugar, confectionery and desserts.
Metro Manila’s inflation rate was flat at 5.6% last month, while in areas outside the capital eased to 4.4% in July from June’s 5.3%
Western Visayas had the highest inflation in July at 5.8%, down from June’s 6.8%, according to Mapa.
Eastern Visayas, on the other hand, recorded the lowest inflation at 2.4%
“We’re seeing a reduction in inflation, that’s a fact, since January. Although may items na tumataas, like rice and vegetables, and baka magkaroon pa ‘yan ng impact ngayong August dahil sa typhoons,” Mapa said.
[Translation: Although there are items, like rice and vegetables, that have recorded increases, and the typhoons may have an impact on August.]
“Because we were hit by typhoons, may expectations na there’s a spike sa presyo ng gulay at bababa naman kapag normal na (there are expectations that there’s a spike in prices of vegetables which would decelerate when things normalize),” he added.
The official said they already recorded price increases in cabbage and tomatoes.
Several parts of the country, particularly northern Luzon, have suffered damage in agriculture after Typhoons Egay and Falcon brought heavy rains that triggered flooding and landslides.
Mapa also said the jump in rice inflation in the past months was also witnessed in July—from 3.6% in June to 4.2% last month.
“Ito ang isa sa mga threats sa pagtaas ng inflation. Hindi pa siya ganoon kataasan pero pwedeng maging source future inflation natin,” he said.
[Translation: This is one of the threats to the increase in inflation. It is not that high yet but it can be our source of future inflation.]
