Metro Manila (CNN Philippines, July 6) — The prices of basic goods and services rose at a slower pace in June led by lower transport cost, the Philippine Statistics Authority reported Tuesday.
The inflation rate was 4.1%, lower than 4.5% in May but quicker than 2.5% in June 2020. The latest figure brought average inflation rate for the first half to 4.4%.
National Statistician Dennis Mapa said transport cost was the main driver for lower inflation. Inflation for transport was 9.6%, much lower than 16.5% in May due to high base effect.
In particular, tricycle fares posted a huge dip to 17.6% from 38.8% in May, while petroleum and fuels were at 21.5% from 33%.
Apart from transport, Mapa said food and non-alcoholic beverages were also a contributor to the June inflation rate. The commodity group logged a 4.7% rate, a tad faster than last month’s 4.6%.
Meat prices went up slower, while fish prices increased faster in June. Prices of other cereals were unchanged.
Inflation for housing, water, electricity, gas and other fuels was at 2.4% from 2% in May as it is higher as well for rentals and electricity, while cooking gas prices picked up at a slower pace.
Metro Manila saw inflation ease in June to 2% from 3.6% the month prior. Areas outside Metro Manila registered 4.4% in June from 4.7% in May.
Central Visayas logged the lowest inflation among all regions outside Metro Manila at 1.7%, while Bicol again posted the fastest rate at 6.3%.
The country’s poorest households or bottom 30% income earners also saw inflation ease in June to 4.3% from 4.5% in May. This brought the average inflation for the group so far to 4.9% this year.
Alongside transport, alcoholic beverages and tobacco primarily contributed to the lower inflation rate.
In a note to reporters, ING Bank senior economist Nicholas Mapa said inflation is expected to fall within target by July “should food and transport cost behave.”
“Average inflation is projected to settle at the high-end of the target range of 2-4 percent in 2021,” said the Bangko Sentral ng Pilipinas in a statement, adding the latest figure is consistent with expectations inflation could remain above target as meat and fuel prices remain high.
The recent inflation figure is also slower than the 4.3% forecast of the BSP for June, falling within its 3.9-4.7% target range.
