Metro Manila (CNN Philippines, July 5) — The rate of price increases dropped further in June, its slowest yet in 15 months, but an official said the jump in rice prices and the potential impact of El Niño on agriculture still pose threats.
Data from the Philippine Statistics Authority (PSA) showed Wednesday that the inflation rate was slower at 5.4% last month than the 6.1% posted in May.
June’s inflation rate is within the 5.3% to 6.1% forecast range of the Bangko Sentral ng Pilipinas for the month.
During a briefing, National Statistician Dennis Mapa said June’s inflation print was the lowest since April 2022.
It also marks the fifth consecutive month of the slowdown in 2023.
According to Mapa, food and non-alcoholic beverages had the largest contribution to the downtrend in June inflation, followed by transport on lower fuel prices.
Slower price increases were also recorded in housing, water, electricity, gas and other fuels.
Seven major commodity groups likewise booked a dip in inflation last month.
In Metro Manila, the inflation rate slowed to 5.6% from 6.5% a month ago. Meanwhile, areas outside the capital region saw their inflation rate dropping to 5.3% from May’s 6%.
Mimaropa had the highest inflation at 7.2%, steady from May. The Cordillera Administrative Region, meanwhile, posted 3.2% inflation from 3.9%.
Fifteen regions in total recorded slower inflation in June, Mapa added.
“The trend is going down but there are risks, one is ‘yung rice. Nakita natin ‘yung pagtaas ng inflation sa cereal, andun ‘yung rice. Ito ‘yung tinitingnan namin,” he said.
[Translation: We have seen there was an increase in the inflation of cereal, which covers rice. That’s what we’re looking at.]
From January’s 2.7%, the rice inflation further expanded to 3.6% in June.
Mapa noted that the increases were witnessed across the three rice categories—regular, special, and well-milled.
“We will check with other agencies (what was the reason behind the increases) kung bakit may increase,” he said.
Asked about the possible impact of El Niño on inflation, Mapa said that if the agriculture sector suffers from the phenomenon, it would definitely affect price increases.
On Tuesday, the state weather bureau said a “weak” El Niño has begun in the Pacific Ocean.
The Philippine Atmospheric, Geophysical, and Astronomical Services Administration warned that the reduction in rainfall could start by October 2023.
READ: Weak’ El Niño begins, impact on PH coming up – PAGASA
