According to data released by the Philippine National Bureau of Statistics, the country’s inflation rate fell to 4.7% in July, marking the sixth consecutive month of slowing down. Compared to the same period last year, the inflation rate narrowed by 1.7 percentage points, and on a monthly basis, it fell by 0.7 percentage points. This is the lowest value recorded since March 2022. In the National Capital Region, the inflation rate remained flat at 5.6% month-on-month, while outside the region, it fell from 5.3% in June to 4.4%.
One of the main factors contributing to the decline in inflation rate is the slowdown in the price increases of housing rents, water, electricity, and liquefied petroleum gas. However, the Central Bank of the Philippines has expressed concerns about the continued tight supply of major food products, the El Niño phenomenon, and the increase in transportation fees, which could pose upside risks to the future inflation outlook. The central bank is prepared to adjust monetary policy if necessary to prevent further expansion of price pressures.
The Philippine government, despite the declining inflation rate, remains vigilant and actively monitors the supply and demand of major commodities. Their goal is to achieve an inflation rate of 2% to 4% by the end of this year. The government has also taken measures to allocate resources to areas affected by extreme weather, such as typhoons, to minimize the impact on inflation and the economy in the second half of the year.
In line with their efforts, the newly established Inter-Agency Committee on Inflation and Market Outlook in the Philippines held a joint meeting to discuss proposed policy adjustments. Their focus is on ensuring a more stable supply of agricultural products and meeting the daily needs of the people.
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