Inflation further dropped to 4.7% in July from 5.4% in June, data from the Philippine Statistics Authority (PSA) showed Friday, as the government’s economic team expressed confidence in a continuous decline in the coming months.
It was the sixth straight month of declining inflation, or the rate of increase in prices over a specific period of time, following a 14-year high of 8.7% in January.
Among the factors cited by the PSA were lower prices in housing, water, electricity, gas, and other fuels (down to 4.5% in July from 5.6% in June), food and non-alcoholic beverages (from 6.7% in June to 6.3% in July), and transportation (from -3.1% in June to -4.7% in July).
“We interpret this as a highly encouraging development. Our economic team is anticipating a sustained decline in our national inflation rate. We assure our fellow citizens that we remain unwavering in executing strategies to maintain the inflation rate well within our target range,” Budget Secretary Amenah Pangandaman said in a statement.
National Economic and Development Authority Secretary Arsenio Balisacan said the government is proactively monitoring the supply and demand situation of key commodities to achieve its inflation target of 2% to 4% by the end of 2023.
“While we continue to experience a downtrend in inflation, we need to be vigilant, especially as we face increasingly volatile weather disturbances as well as external headwinds such as oil price increases and trade restrictions on food,” he said.
“The government will implement necessary measures to prevent price spikes, protect the purchasing power of Filipino families, and sustain our economic recovery and momentum.”
