Inflation eases to 0.9 percent in July

Metro Manila, Philippines - The country’s inflation rate eased in July to 0.9 percent from 1.4 percent in June amid slower increases in utility costs, as well as declining rice prices.

This was the lowest rate since 0.6 percent in October 2019. The July 2024 figure was 4.4%.

The Philippine Statistics Authority (PSA) reported Tuesday, Aug. 5, that easing electricity costs was the main driver in the downward inflation of “housing, water, electricity, gas, and other fuels” group.

The rate for that group was pegged at 2.1 percent, lower month-on-month from 3.2 percent. It contributed almost half to July’s overall inflation print.

Rice prices had their fastest annual decline yet, with a contraction at 15.9 percent from June’s 14.3 percent.

National Statistician Dennis Mapa said the PSA believes rice deflation will continue in August, even amid talks of possible tariff rate hike on imported rice.

READ: DA seeks higher rice tariff, import pause

Mapa said the impact will depend on the rate of increase and timing.

“Pag may increase ‘yung tariff, ang implication niya is that there will be an increase in the retail price, so titingnan natin kung gaano kabilis ang increases,” he said.

[Translation: If there’s an increase in tariff, the implication will be an increase in retail price, so we will check how fast the increases will be.]