4-8-2023 (MANILA) The Philippines experienced a slowdown in annual inflation for the sixth consecutive month in July, as reported by the statistics agency on Friday. The easing inflation was attributed to slower increases in both food and utility costs.
The consumer price index (CPI) rose by 4.7 per cent in July, marking its slowest annual increase since March 2022. However, despite the easing, the inflation rate remained above the central bank’s target range of 2 per cent to 4 per cent for the year.
From January to July, headline inflation averaged 6.8 per cent, reflecting the persistent pressures on prices during the first half of the year.
Economists, who participated in a Reuters poll, had predicted a higher rise in the consumer price index for July, forecasting a 5.0 per cent increase. This projection was above the central bank’s estimate, which anticipated a rise of 4.1 per cent to 4.9 per cent for the month.
Additionally, core inflation, which excludes the volatile food and fuel items, also witnessed a decrease in July. It slowed down to 6.7 per cent, a decline from the 7.4 per cent recorded in the previous month.
The easing inflationary pressures could have implications for the country’s economic outlook and monetary policies moving forward. Authorities will closely monitor the inflation trends to ensure stability and address any potential challenges to the economy.
