Metro Manila, Philippines – The country’s inflation rate eased to 6.2% in July from 6.4% a month earlier, marking its first slowdown in three months, as transport costs rose at a slower pace following weeks of volatility in global oil prices, government data showed on Wednesday, Aug. 5.
The Philippine Statistics Authority (PSA) said the July reading brought average inflation for the first seven months of the year to 5.0%, which remains above the government’s target despite the latest moderation.
Transport inflation slowed to 11.9% from 12.8% in June, helping ease overall consumer price growth. Smaller increases in education and restaurant prices also contributed to the slowdown.
Food and non-alcoholic beverages remained the largest contributor to inflation, followed by housing, water, electricity, gas and other fuels, and transport.
Food inflation held steady at 5.3%, with cereals and cereal products, including rice, accounting for the largest share of the increase, followed by fish and other seafood, and vegetables, tubers, plantains, cooking bananas and pulses.
Core inflation, which excludes selected volatile food and energy items and is considered a better measure of underlying price pressures, eased to 4.2% from 4.4% in June.
Inflation in Metro Manila slowed to 4.4% from 4.9%, while areas outside the capital posted a slight decline to 6.7% from 6.8%.
Inflation measures the rate at which the prices of goods and services increase over time.
